Three months after his south Omaha home was the scene of FBI agents armed with a federal search warrant, Omaha City Council Vice-President Vinny Palermo is in divorce court.

According to court records examined by News Channel Nebraska, Palermo’s wife of five years, Aubrey Palermo, filed for divorce on March 20.

The very next day the Democratic councilman, who was elected in 2017 and reelected in 2021, answered her lawsuit agreeing with her that the marriage is “irretrievably broken.”

Mrs. Palermo has asked the court to restrain her husband from, “harassing, annoying, threatening, or disturbing” her peace and their young child’s peace.

Mr. Palermo denies any such suggestion.

At the same time Councilman Palermo says his wife, “recently withdrew funds in excess of $16,000” from the family business' operating account which left the company, Vinny's Tree Service, "without funds to pay for payroll, taxes, equipment and supplies." He wants the court to restrain her from “engaging in any activity detrimental” to the day-to-day operations, which include tree trimming, removal, and stump grinding, according to the company’s Facebook page.

Mrs. Palermo is asking the court, “For a determination of the management” of the business, which has an A+ rating from the Better Business Bureau.

In late December, the raid on Palermo’s $530,000 home on south 13th street was all part of a federal investigation that involves PACE, a non-profit aimed at keeping inner city kids in athletics and out of trouble. 

[View our earlier reporting on Palermo's problems above]

Following the raid, Police Chief Todd Schmaderer released a statement noting he’s “Concerned that PACE may have been used for criminal activity.”

Mayor Jean Stothert said, “Regarding Councilmember Palermo…we hold our public officials to a high standard.”

As NCN first reported the investigation has found the city suspending over $340,000 in funding for PACE while the probe rolls on.

Palermo, who has not been available for comment on any of this, is no stranger to federal investigations.

Just over three years ago (Dec. 18, 2019) he was sentenced to four years federal probation, for failing to file federal income tax returns in 2012, ’13, and ’14.