An inner-city group that helps kids is once again poised to get its hands on tens of thousands of dollars from the City of Omaha.

Following a scandal that rocked City Hall last year, Mayor Jean Stothert says the non-profit PACE, Police Athletics for Community Engagement, is turning the page and in line for $50,000.

[VIEW OUR FULL VIDEO REPORT ABOVE]

After months of saying ‘no’ Omaha Mayor Jean Stothert is ready to once again, put city money, $50,000 for now, in the hands of a group tied to a scandal that rocked City Hall.

January 2023

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

Former Omaha City Council Vice-President Vinny Palermo now sits in federal prison following what prosecutors called a scheme to defraud taxpayers, a scheme felt on the streets of North and South Omaha.

PACE Website Video: “How do you improve the quality of life for the entire city? Here’s a proven program for 16 years, 31,000 kids.”

PACE, an inner-city non-profit aimed at keeping kids, largely Black and Hispanic, in sports and out of trouble.

July 2023

Mayor Jean Stothert, Omaha (R): “The concept of the program PACE was a great concept and then to really find out what had happened, and that money was being taken from this organization and what it was being spent on was pretty disturbing to me.”

According to the government, central to the scheme along with Palermo were two former Omaha Police officers Rich Gonzalez, a top man at PACE and Johnny Palermo. Gonzalez and Palermo also in prison, PACE fundraiser Jack Olson still awaiting trial.

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: “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.”

Randy Paragas, Palermo’s Attorney: “He would vote in favor of the benefits to those organizations in exchange for trips.”

Mayor Stothert:  “It didn’t look good at all.”

And it found Stothert putting PACE contributions from the city on hold.

As NCN first reported, for 2023 the city initially budgeted $100,000 for PACE, then Palermo pushed and got another $26,000 added in.

Palermo (Sept 13, 2022): “For me it always goes back to the kids.”

But when the investigation hit Mayor Jean Stothert shut the money down, suspending that $126,000.

And then there was the city’s distribution of federal COVID cash, ARPA money.

All told PACE was in for $360,000, half in 2022, half in 2023.

PACE received the $180,000 for 2022, but that remaining $180,000 was suspended.

Mayor Stothert: “We gave money to PACE, we trusted it was being run.”

Now in a letter asking the City Council to give PACE $50,000, Stothert says “PACE has taken significant steps to reform the organization,” including new board members and “an outside firm was hired to oversee PACE’s accounting.”

That while Palermo has roughly another year behind bars.