Claude Palmero, once a trusted financial advisor to Monaco’s royal family, is now at the center of a scandal that threatens to shake the foundations of one of Europe’s most storied dynasties. For over two decades, Palmero managed the complex financial dealings of Prince Albert II and his sisters, but allegations of financial mismanagement and wrongdoing have shattered that trust.
The investigation began in 2023 when French authorities detected irregularities in the royal family’s accounts during routine checks. What seemed to be minor discrepancies quickly escalated into a significant inquiry, revealing troubling aspects of Palmero’s management.
The fallout led Prince Albert and his sisters to file criminal complaints accusing Palmero of serious offenses, including breach of trust, theft, forgery, and money laundering. This dramatic shift signals a profound sense of betrayal for the prince, who once held Palmero in high regard. In private messages made public, Prince Albert expressed the need to “blow the whistle” to restore confidence within his family and the public.
Evidence has since surfaced showing that Palmero exercised extensive control over the royal family’s finances, handling vast sums—exceeding $113 million at one point. A notable controversy arose when documents revealed a secret transfer of $15.9 million in 2018 to Nicole Coste, the prince’s former partner. Palmero insisted that the transaction was conducted discreetly to protect the prince’s marriage.
Other questionable expenditures also came to light, including nearly $800,000 in private expenses that Palmero attributed to his own reimbursement for off-the-books costs tied to the prince’s private lifestyle.
In his defense, Palmero has suggested that accountability should not solely rest on him. He questioned how Prince Albert could remain unaware of the management of his own assets for over two decades, asserting, “He is the sovereign of a state! Either he is lying or he should step down.”
Prince Albert admitted in a past interview to being somewhat detached from the nitty-gritty of financial management, which may have allowed Palmero’s actions to escape scrutiny for years. This scandal has also delayed philanthropic efforts, including a significant $2 million donation to Amherst College, stemming from complications in liquidating Palmero’s investments.
As the investigation unfolds, the royal family is reportedly taking decisive actions to rectify the situation. A statement from the prince’s legal team emphasized that “the prince has taken all necessary decisions and measures to address the issues” and that the matter is now with the judiciary.
This situation serves as a reminder of the importance of transparency and checks in financial governance, particularly within royal households trusted to manage significant public and private funds. The consequences of this scandal could very well lead to necessary reforms and a more vigilant approach to financial oversight moving forward.