OMAHA- Early Tuesday morning, FBI agents and troopers from the Nebraska State Patrol began a three-hour search of the South Omaha home of City Council member Vinny Palermo, who is serving as Omaha's acting Mayor while Mayor Jean Stothert and Council President Pete Festersen are out of town.

The federal probe was started after PACE, a police officer-run charity organization that offers free sports activities to youths, was suspected of criminal activity. Two officers, Johnny Palermo and Daniel Torres, were placed on paid administrative leave by Omaha Police Chief Todd Scmaderer for their involvement with PACE, and an internal investigation will be conducted.

In a statement, Schmaderer said, "I am concerned that PACE may have been used for criminal activity. Heightening my concern is the possibility that a few current and former Omaha Police officers may have been involved." Mayor Jean Stothert and Schamderer confirmed that a criminal investigation of PACE was underway, but neither they nor the FBI could share any details.

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