Former Omaha city councilman Vinny Palermo, who was convicted in a federal fraud case, is now out of prison early.In January, Palermo was sentenced to 27 months in prison with nine months time served.Palermo’s lawyer said he’s still on house arrest and is residing in Omaha. Randy Paragas says Palermo has been back in Omaha since last week. Paragas says the reason for his early release is overcrowding in the system and Palermo’s good behavior while serving time.”The Bureau of Prisons in the federal system has a number of incentive programs for prisoners. They recognize good behavior. They aim towards solving the overcrowding problem,” Paragas told KETV Newswatch 7 Thursday. “His (crime) was a white-collar crime, with no violence. He has no history of violence.”In January 2024, Palermo started his prison sentence in Yankton, South Dakota. Paragas said Palermo was moved to a halfway house in Kearney, Nebraska, three weeks …