On September 13, 1960, Palermo allegedly murdered Alphonso "Zeeny" Colicchio. Colicchio was the owner of a bar and grill in Elizabeth, New Jersey who had been disrespectful to DeCavalcante boss Nicholas Delmore. On Delmore's orders, Palermo and other DeCavalcante mobsters entered Colicchio's bar and started beating him. When Collicio resisted, Palermo allegedly shot him to death. Palermo kept the murder quiet for the sake of fellow DeCavalcante mobster Giovanni Riggi, who was Colicchio's brother-in-law.