The downfall of former Omaha City Councilman Vinny Palermo is having a ripple effect on one of the city’s key fundraising operations.

It’s Omaha’s long existing plan doling out fireworks permits to worthy nonprofit groups.

[View our full video report above]

Aimee Melton, Omaha City Council VP, (R): “Right now, nonprofits can apply for fireworks permits. We issue 40 per year. Basically, each council member gets three picks.”

But Omaha City Council Vice President Aimee Melton tells NCN that selection process needs to change.

And here’s why. Former City Councilman Vinny Palermo was gaming the system. 

January, 2023

Joe Jordan, NCN: “Mr. Palermo, can I ask you a few questions?”

Palermo refusing to talk publicly until he pleaded guilty and now faces up to 21 months in prison for one count of federal wire fraud.

August, 2023

Federal Judge Cheryl Zwart: “You were also a member of a committee that awarded fireworks permits to nonprofits in the city of Omaha, correct?”

Vinny Palermo: “Not that entire time.

Judge Zwart: “OK, but during part of it?”

Palermo: “Yes, your honor.”

Judge Zwart: “Did you also work along with or know Johnny Palermo and Richard Gonzalez?”

Palermo: “Yes, your honor.”

Judge Zwart: “Did you along with those two defendants come up with a plan where you would assist in having fireworks permits provided to PACE?”

Palermo: “I would say, yes.”

Palermo the first of four defendants in the case to admit to what the judge called a scheme, helping two of the three others, former Omaha police officers Rich Gonzalez and Johnny Palermo get their hands on fireworks permits for the Latino Peace Officers Association and PACE, which works to keep inner city kids in sports and out of trouble.

Randy Paragas, Palermo’s Attorney: “The government was alleging, and Mr. Palermo has pleaded to, that there was some type of agreement that he would vote in favor of the benefits to those organizations in exchange for trips and that sort of thing.”

Joe Jordan, NCN: "Did it ever come to your thoughts, this is a potentially corrupt system?”

Aimee Melton: “I've been complaining about this for a long time. Wasn't alleging that any council member ever engaged in the corruption, but I said it's ripe for it.”

Joe Jordan: "You want to change this to what?"

Aimee Melton: "I do. I would like to change it to a lottery system. Now I do think we need to review the applications, I want to make sure that it's Omaha nonprofits that are receiving the benefit. I don't want outside organizations coming in. Then once they've been approved that they're an Omaha nonprofit and benefit our community then we do a lottery to select who gets the permits."

Joe Jordan: "You confident, optimistic, these changes will occur?"

Aimee Melton: “I really am. Mayor Stothert and I have talked about this at length. I know I have the support of many of our council members and I think I have enough support to pass it."

If enacted the new fireworks plan would go into effect later this year, in time to hand out next year’s permits.