But now Palmero is asking for around one million euros ($1.1 million) in damages from the palace, according to a complaint seen by AFP, over losing his job after becoming embroiled along with other former senior palace officials in unverified allegations posted in the "Dossiers du Rocher" ("Rock Files", referring to Monaco by its nickname) website from 2021.
The website hosted videos, confidential email conversations and hostile articles dealing with property development in the principality.
The controversy has roughed up the usually calm waters around Monaco, a tiny principality surrounded by French territory which attracts ultra-rich residents –- like tennis star Novak Djokovic and formula 1 champion Lewis Hamilton -- due to its favorable tax regime.
With a population of barely 40,000, Monaco neither imposes income nor wealth taxes.
Among the material published by Dossiers du Rocher were email exchanges between four people close to Albert, including Palmero, accusing them of collusion in an alleged financial scam.
As well as Palmero, Albert's chief of staff Laurent Anselmi also lost his job in June.
- 'From another age' -
In charge of the crown assets, Palmero was known as a Monegasque eminence grise, who was tasked with strategic issues including taking a stake in Nice's airport and buying property, as well as being a keeper of palace secrets.
He lodged an appeal against his dismissal in the case before Monaco's constitutional court, known as the Supreme Tribunal, that his lawyer filed on July 13.
"No reason has ever been given to justify these decisions that come from another age and manifestly violate the principle of legality," said the complaint filed by one of his lawyers Pierre-Olivier Sur and seen by AFP.
"Prince Albert II during his reign has congratulated himself in front of his subjects and the whole world that Monaco is a state of law.
"Alas, there are circumstances where this principle is sadly forgotten by him and favor the violence of arbitrariness," it added.
Palmero is seeking the condemnation of the prince to repair "the immense moral damage, injury and disruption to living conditions", claiming the one million euros and his reinstatement.
Albert's lawyer Jean-Michel Darrois said in response: "This is a discretionary decision by the royal house as is the case with several other monarchies."
But the controversy is deeply unwelcome for Albert, who has already been under intense scrutiny over his marriage to Princess Charlene, the former South African Olympic swimmer in 2011, in French and international media in recent months.
Charlene only returned to Monaco in March 2022 after a months-long absence for medical treatment.
- Raids and infighting -
The case, which is set to be heard in the coming weeks, comes as judicial authorities launched a series of searches in mid-July at the four former confidants of the prince accused in the Dossiers du Rocher.
All those involved deny the allegations put forward by the Dossiers du Rocher, which published their private correspondence and whose origins remain a mystery despite investigations by the French and Monaco authorities.
Patrice Pastor, a Monegasque construction entrepreneur, has filed a complaint over alleged influence peddling against them. But while they suspect him of being behind the website the businessman strongly denies this.
The purported motive of Pastor, whose group is worth up to 30 billion euros, is alleged by his enemies to have wanted to maintain control over lucrative real estate transactions in the principality, which Palmero and his allies sought to limit.
According to official figures, 88 new apartments were sold in 2022 in Monaco, for a stratospheric total amount of 1.2 billion euros. The Pastor group is particularly involved in the Mareterra project, six hectares of luxurious buildings looking out to the Mediterranean.
First reported by France's Le Monde daily, the searches targeted, in France and Monaco, the homes and offices of Claude Palmero, the law firm of Thierry Lacoste, childhood friend of the prince, Laurent Anselmi, and Didier Linotte, president of the Supreme Tribunal, who is about to leave office.
Monaco's prosecutor general refused any comment.
The four men do not deny being in touch with each other but insist it was to deal with regular business of Monaco.
Two other men are also reported to be part of the group: former Monaco government chief Michel Roger, who is said to have formed it, was left a paraplegic after an accident in 2015. The sixth man was Jean-Francois Renucci, former head of the court of cassation in Monaco, who died in a car accident between Monaco and Nice in 2021 just as the Dossiers du Rocher scandal was erupting.
The four allege that Pastor has now won the favor of the prince but this was denied by a palace aide. "This prince does not take sides," the aide, who was not named, told Le Figaro daily.
