Omaha City Councilman Vinny Palermo is back in orange, his attorney downplaying talk that a possible federal probation violation will keep him behind bars. 

The judge announcing today that she’ll make her ruling on his possible release Friday.

This morning, two days after walking into Lincoln Federal Court in dress shirt and slacks, today's day-long hearing found Palermo in one of those all-to-widely recognized jailhouse jumpsuits.

But there was no change from Monday's handcuffs and ankle cuffs when Palermo pleaded not guilty.

The two-term Councilman continuing to make his case today for a get-out-of- jail card while awaiting a months-away trial on federal fraud and kickback charges, accusations Palermo’s attorney, Randy Paragas, labels “paper crimes.”

As NCN first reported Palermo, who was stripped of his Council Vice-President title Tuesday, is accused of saying, "Somebody f...ing ratted” on a federal wiretap.

In court today Paragas downplayed the comment. NCN then spoke with Paragas outside of court.

[View Joe's interview with Paragas above]

NCN’s Joe Jordan: “You said in court today, it’s not illegal it’s not a crime. But isn’t it damaging?”

Randy Paragas, Palermo’s lawyer: “Damaging in what regard?”

Jordan: “Indicating that he did something wrong.”

Paragas: “Well I don’t think you can infer that if Mr. Palermo says someone ‘ratted’ did they rat on him, did they rat on someone Mr. Palermo knows…you just can’t make those assumptions.”

Paragas is convinced Palermo should be released as soon as possible, that if out he won’t obstruct justice. Prosecutors today insisted Palermo has already crossed the line, telling grand jury witnesses, including his adult son Vinny Palermo Jr., “what to say.”

As for Palermo’s possible federal probation violation—he pleaded guilty three years ago to federal tax crimes—Paragas insists that’s not an issue, at least not now.

Jordan: “You don’t think he violated his federal probation?”

Paragas: “We’re on step one on that.

Jordan: “You think he can be released, regardless of a federal probation violation?”

Paragas: “I not only think that I know that he can. I have several clients right now that are in that exact situation and are released.”

On Monday the judge refused to release one of Palermo’s fellow co-defendants, former Omaha Police Officer Johnny Palermo, telling the former detective she didn’t “trust him.”

The two Palermos along with former Omaha Police Captain Rich Gonzalez and Jack Olson, a fundraiser, are accused of, among other things, misusing monies from two South Omaha non-profits, the Latino Peace Officers Association and PACE, a group designed to keep kids In athletics and out of trouble.

Gonzalez' lawyer, Steve Lefler, raised bookkeeping questions today, arguing both groups are "run in a loosey-goosey manner." Asked if she agreed with that description, FBI agent Michele Stevenson, who has been backing up the prosecution's case, said yes.

Regarding Paragas’ claim that Councilman Palermo is accused of “paper crimes” Paragas added that “they don’t have to deal with rapes, and they don’t have to do with police cover-ups.” Paragas says the alleged crimes have to do with “not filing on disclosures, wrong filings.”

Paragas would not talk about any of Palermo’s next political steps. He has refused to resign, although Democratic Party Chair Jane Kleeb said Tuesday that she wants him out.