Former Omaha police captain, nonprofit leader sentenced to 18 months in prison for conspiracy

From the What you missed last week in notable Omaha crimes and court cases series

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Attorney Steve Lefler speaks after former Omaha Police captain Richard Gonzalez was sentenced to 18 months in federal prison.

ANNA REED THE WORLD-HERALD

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Molly Ashford World-Herald Staff Writer

LINCOLN — A former Omaha police captain was sentenced in federal court Tuesday to 18 months in prison after he pleaded guilty to conspiring with others to defraud multiple police organizations. 

Richard Gonzalez was the second person to be sentenced in connection with the wide-ranging fraud scheme. Gonzalez was a member of the Omaha Police Department for more than 25 years before his retirement in 2017, but he served as the executive director of police-run youth sports charity Police Athletics for Community Engagement (PACE) until late 2022. 

Gonzalez was indicted last year on 13 felony charges across two indictments alleging honest services fraud, bank fraud, wire fraud and multiple conspiracy counts. The grand jury indictment alleged that Gonzalez and his co-conspirators spent tens of thousands of dollars of donation money meant for PACE and the Latino Peace Officers’ Association (LPOA) on personal expenses like vacations, alcohol and gambling. It also alleged that Gonzalez facilitated a scheme in which Jack Olson, who was hired as an LPOA fundraiser, was allowed to keep more than 80% of donations to himself without the board’s knowledge.

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Within months of the indictment, Gonzalez pleaded guilty to a single count of conspiracy to commit wire fraud. On Tuesday, prosecutors dismissed the 12 additional charges in exchange for his guilty plea. 

U.S. District Judge John Gerrard sentenced Gonzalez to 18 months in prison on the conspiracy charge — a middle ground between the prosecution’s request for 21 months and the defense’s argument for 15 months. Gonzalez will also have to pay more than $66,000 in restitution to LPOA, PACE and multiple individual donors.  

At sentencing, prosecutors referenced a victim impact statement written by the current director of PACE, which said Gonzalez’s actions led to a direct decline in donations and youth served by the charity. 

“Usually PACE provides access to free athletics to nearly 5,000 youth at no cost,” Sean Lynch, a federal prosecutor, said. “As a result of this case, this year, PACE had to limit participation to 2,000 youth. The brunt of his actions are being borne by the youth who aren’t able to participate in PACE’s mission.”

Gonzalez made a brief statement to the court in which he apologized to anyone affected by his decisions. He also said the ordeal has reinforced his desire to serve his community. 

“I contributed to a loss of community trust,” Gonzalez said. “Today I commit to the court and to the community to do anything and everything to make it right. My desire and determination to serve my community is stronger throughout this process.” 

Gonzalez was named in the indictments alongside three co-defendants: Johnny Palermo, an Omaha police officer who was the president of the LPOA; Jack Olson, who was a paid fundraiser for LPOA and close friend to Gonzalez; and former Omaha City Councilman Vincent “Vinny” Palermo, who is not related to Johnny Palermo. 

One indictment largely focused on alleged fraudulent activity by Vinny Palermo through his position on the City Council. Gonzalez and Johnny Palermo were both named in one of the nine counts, alleging they used LPOA and PACE funds to pay for Vinny Palermo’s lodging and airfare for a handful of lavish trips across the country. 

Ex-Omaha councilman Vinny Palermo sentenced to 27 months for conspiracy

Vinny Palermo pleaded guilty to conspiring with Gonzalez and Johnny Palermo to commit honest services fraud and was also sentenced Tuesday to 27 months in prison. He faced additional penalties because he was on federal probation at the time of the charged offenses. 

The other indictment alleged a seven-year scheme in which Gonzalez and Johnny Palermo employed Olson as an LPOA fundraiser while letting him keep 65% to 80% of the charity donations for himself — amounting to more than half a million dollars. 

As part of the plea agreement, Gonzalez admitted to a lengthy and wide-ranging statement of facts. He admitted to the following acts in furtherance of the conspiracy:  

Johnny Palermo, who faces 15 felonies across both indictments, has indicated his intent to accept a plea agreement and is scheduled to be in court Thursday for a change of plea hearing. Olson’s case is set for a jury trial in April. 

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011724-owh-new-palermo-ar04.JPG

Attorney Steve Lefler speaks after former Omaha Police captain Richard Gonzalez was sentenced to 18 months in federal prison.