Former fundraiser for Omaha nonprofit sentenced for keeping donations for himself

LINCOLN, Neb. (KLKN) — A fundraiser who ripped off an Omaha nonprofit will spend almost three years in prison.

Jack Olson, 68, was sentenced to in federal court Tuesday to 21 months in prison for conspiracy to commit wire fraud and 12 months in prison for tax evasion.

The sentences will be served consecutively.

U.S. District Judge John Gerrard also ordered Olson to pay $136,178.75 in restitution.

SEE ALSO: Omaha city councilman, former police officers accused of corruption

From 2017 to 2023, authorities said Olson was raising money for the Latino Peace Officers Association — and keeping a large cut for himself.

The organization said “every penny” of donations went to its causes, like athletic programs for at-risk youth.

But Olson was actually keeping 65% of the donations he collected, the U.S. Attorney’s Office said.

And then, without approval from the board, he upped his share to 80%.

The U.S. Attorney’s Office said Olson spent a lot of that money on personal expenses.

He conducted business with cash and avoided making records that would allow the IRS to see how much money he made, authorities said.

Olson failed to file income tax returns from 2018 through 2021, according to the U.S. Attorney’s Office, resulting in a loss of $95,705 to the federal government.

Johnny Palermo, the former leader of LPOA, was sentenced in April to two years in prison.

Former Omaha Police Capt. Richard Gonzalez, who led the nonprofit Police Athletics for Community Engagement, got 18 months in prison.

Authorities said Palermo and Gonzalez provided then-Omaha City Councilman Vinny Palermo with gifts like airfare and luxury hotel rooms to influence his action.

Vinny Palermo, who is not related to Johnny Palermo, was sentenced to 27 months in prison.