Former Omaha police officer to be released from federal prison on Wednesday

DULUTH, Minn. (WOWT) – One of the men serving a prison sentence for his involvement in an Omaha public corruption scandal is preparing to return home.

It’s a case that rocked the city last year: Two Omaha police officers and an Omaha city councilman were caught wiretapping FBI phone conversations and betrayed by informants as part of a plot to misuse money set aside for a nonprofit police organization for their own benefit and influence.

All three pleaded guilty to one count each.

Richie Gonzalez, 56, is the first to be released from federal prison. His attorney told 6 News that Richie’s family was on their way to Duluth, Minnesota, to pick him up on Wednesday. Duluth is home to a minimum-security federal prison. Gonzalez also spent time in facilities in Leavenworth, Kansas, and Chicago.

His prison sentence was 18 months.

Gonzalez was not supposed to be released until September, but his release dates are still open. The government has a program called “Federal Time Credit” that allows inmates to reduce their sentence if they behave well and participate in reform programs.

In court, the government said the scheme defrauded two organizations – the Latino Peace Officers Association and Police Athletics for Community Engagement – and their donors of about $200,000. Gonzalez himself must repay $66,000.

The other former police officer, Johnny Palermo, and former city councilman Vinny Palermo – who is not related – are also scheduled to be released from federal prison earlier than expected.

Johnny is in a medium security facility in Oklahoma and is scheduled to be released in January. Vinny is currently in the federal prison in Yankton, South Dakota, and is scheduled to be released in February.

When federal authorities first got involved nearly 18 months ago, a fourth person was charged: chief fundraiser Jack Olson. He remains in county jail, preparing for trial in September. The other three have all agreed to plea deals.

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