Turlock city attorney named in Lodi lawsuit alleging credit card misuse and more
Turlock’s city attorney was named in a recent lawsuit filed by the former city manager in Lodi, alleging she used her city-issued credit card for personal expenses and sanitized agendas and staff reports without consent.
Katie Lucchesi was appointed as Turlock’s in-house attorney in March, replacing George Petrulakis. Petrulakis, who served in the role under a contract between the city and his Modesto-based firm, Petrulakis Law & Advocacy, announced in September that he would step down to focus on his private practice.
Prior to coming to Turlock, Lucchesi served as Lodi’s city attorney for a little over five years.
On June 4, Lodi’s former city manager Scott Carney filed a civil complaint in San Joaquin County Superior Court against the city, alleging retaliation for raising concerns about financial and internal control irregularities. He is seeking an undisclosed amount in damages.
Carney had publicly raised concerns during a City Council meeting in April 2025. He also began discussing personnel matters in open session, before the mayor stopped him for allegedly violating the Brown Act.
Carney was placed on administrative leave for the alleged violation of the Brown Act, and the council authorized an outside investigation into his claims. He was formally terminated in November 2025.
What was alleged?
Carney’s lawsuit alleges that multiple city employees, including Lucchesi, repeatedly used city-issued credit cards for personal purchases, effectively receiving taxpayer-funded interest-free loans.
A preliminary investigation identified 332 personal charges totaling about $15,000 over a six-year period. The complaint alleges that prior city administration encouraged the use of city-issued cards for personal use as long as reimbursement was provided.
“Although the limited evidence currently available suggests that reimbursements were provided, use of a city credit card followed by reimbursement of personal expenses is not permitted and is not a defense for violating city policy or California Penal Code 424,” Carney wrote in a memorandum to the council.
Carney also stated that he could not process an audit into the credit card abuses through Lucchesi’s office, “given her own violations.”
According to the lawsuit and attached memorandums written by Carney, Lucchesi altered parts of the 2024-25 staff report on midyear budget adjustments to “diminish transparency” and shield city staff from public scrutiny.
Carney alleges Lucchesi deleted language warning the council that the external auditor would be presenting “material findings” regarding deficiencies. He said she also deleted a note explaining that the resources requested in the mid-year budget were unlikely to solve all the city’s internal control failures, and that additional positions beyond those requested would likely be required.
In addition, Lucchesi allegedly deleted disclosures revealing that the city had failed to properly allocate allowable costs and over-spent limited General Fund resources.
Lucchesi allegedly altered those parts because the language was unrelated to the budget adjustments and stated that it was normal for cities to go 10 years without updating their cost allocation plans. Carney disagreed with this rationale.
After telling Lucchesi he did not consent to her edits, he learned that her version would be published and presented to the council, according to the lawsuit.
“The edited reports redact public disclosures related to over spending the city’s limited general fund, internal control deficiencies, and material findings from the annual audit,” Carney had stated during a City Council meeting on April 1, 2025. “The redactions reduce the transparency and accountability contained in the original staff reports.”
In an attached statement, Carney also alleged that similar attempts were made by Lucchesi before when assessments of the library, finance and human resources operations were brought forward.
Carney wrote that Lucchesi’s resistance to transparency was highly concerning given her awareness of other issues, including a 2021 incident where an employee was criminally charged for stealing thousands of dollars using a city credit card.
In a statement to The Bee, Turlock said it remains confident in the “thoroughness of its executive recruitment and hiring process, as well as in City Attorney Katie Lucchesi’s ability to continue serving the city of Turlock with professionalism and integrity.”
“Because this inquiry concerns allegations and legal matters involving another public agency, it would not be appropriate for the city of Turlock to comment on those allegations or legal proceedings,” said Joseph Spangler, spokesperson for the city. “Our focus remains where it belongs, serving the people of Turlock and working every day to strengthen our community.”
Previous lawsuits involving Turlock’s newly appointed city manager, John J. Murphy, stemming from his tenure leading the city of Palmdale, have also recently resurfaced. Despite concerns raised by some constituents, the City Council unanimously approved his appointment last month.
