Former Omaha Police Officer Accepts Plea Deal in Corruption Case
A former Omaha police officer involved in a federal public corruption investigation has pleaded guilty to conspiracy to commit wire fraud. Johnny Palermo, the former president of the Latino Peace Officers Association (LPOA), is one of four defendants in the case, three of whom have now accepted plea deals. Palermo admitted to conspiring with his codefendants to defraud LPOA for personal gain, as well as benefiting a fundraiser who allegedly kept a substantial portion of charitable donations. Palermo faces up to 30 months in federal prison for his involvement.
The charges against Palermo and the other defendants include bank fraud, wire fraud, honest services fraud, and conspiracy. Back in April, Palermo, former Omaha City Councilman Vinny Palermo, former Omaha Police Capt. Richard Gonzalez, and LPOA fundraiser Jack Olson were indicted and have been in custody since then due to concerns about obstruction of justice and witness tampering. With Johnny Palermo’s guilty plea, prosecutors are likely to dismiss the remaining charges against him during his sentencing.
In his plea agreement, Johnny Palermo revealed details about the conspiracy. He facilitated a scheme with Olson, who used a fake name to raise money for LPOA, falsely claiming that all the funds would contribute to athletic programs and other causes supported by LPOA. However, Olson allegedly kept the majority of the donations for himself. Palermo also admitted to using LPOA funds without board approval, including spending money on a trip to Las Vegas for Vinny Palermo, Gonzalez, and himself, as well as frequenting bars and restaurants. Additionally, Palermo revealed that Olson’s share of LPOA donation money increased from 65% to 80% without board approval.
Under his plea agreement, Johnny Palermo will not face a sentence exceeding 30 months. He will also receive credit for the time he has served awaiting trial and will be ordered to pay restitution. Vinny Palermo and Richard Gonzalez received similar plea deals, resulting in their incarceration being capped at 21 months. Vinny Palermo received a sentence of 27 months in federal prison due to violating the terms of his federal probation. Gonzalez was sentenced to 18 months in prison for conspiracy to commit wire fraud. Olson intends to proceed to trial, with the case scheduled for April.
Johnny Palermo’s sentencing is set for April 11.
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