Carney sues City of Lodi over alleged retaliation

Lodi's former city manager is suing the city under California whistleblower protection laws, alleging he was retaliated against and ultimately fired after raising concerns about financial irregularities and internal controls at City Hall.

Attorneys for Scott Carney filed a civil complaint in San Joaquin County Superior Court on June 4 seeking an unspecified amount in damages. The Lodi City Council is scheduled to discuss the matter in closed session Wednesday.

The lawsuit stems from allegations Carney publicly raised during an April 2025 City Council meeting, when he expressed concerns about weak internal controls, potential misuse of city credit cards and alleged attempts to alter staff reports before they were presented to the council.

During the meeting, Carney also began discussing personnel matters in open session, prompting then-Mayor Cameron Bregman to order him to stop.

The council subsequently placed Carney on administrative leave, citing an alleged violation of the Brown Act, and authorized an outside investigation into his claims.

The Brown Act prohibits elected officials and staff from discussing personnel matters that are not properly agendized.

Lawsuit outlines timeline of concerns

According to the lawsuit, two community members approached Carney on May 1, 2024 - the same day the council approved his employment contract - with concerns about the management of city programs and resources.

The lawsuit also states that Carney met with Councilman Ramon Yepez on May 13, 2024, during which Yepez allegedly expressed concerns about public corruption and called for an audit of the city.

Carney said he began informing the council in August 2024 about concerns involving the city's accounting and procurement processes.

Those concerns included:

An alleged attempt by a department director to hire a relative in violation of the city's nepotism policy.

Failures to comply with the California Public Records Act.

Potentially criminal conduct by an employee that allegedly occurred before Carney became city manager.

Carney also said he initiated investigations into potentially criminal activity involving employees in two separate departments.

Allegations cited in the lawsuit

The lawsuit details several incidents Carney says warranted further investigation.

In one instance, a public works employee allegedly used a city credit card in February 2024 to purchase 100 doses of Narcan nasal spray.

Carney said he discussed the purchase with the former assistant city manager and former public works director and determined there was no approved program or policy authorizing distribution of the Narcan. The employee later became the subject of a separate investigation, according to the lawsuit.

The lawsuit also alleges that a recycling vendor reported a "pay-to-play" scheme within the Public Works Department in July 2024.

According to the complaint, the vendor said a city employee approached him about providing recycling services at the Municipal Services Yard without a formal procurement process or contract. The vendor further alleged that Public Works employees requested cash payments and told him to remove his bins after he refused to pay.

Carney said the matter was referred to the San Joaquin County District Attorney's Office for further investigation.

In another instance, Carney alleged a city technology manager exceeded his purchasing authority during his final month of employment.

The city allows employees to request temporary exemptions from credit card spending limits. According to the lawsuit, the employee made several purchases between $5,000 and $10,000, while one purchase exceeded $50,000.

Carney said he recommended additional investigation into both the purchases and the city's procurement procedures.

The lawsuit also alleges that, around February 2025, a management-level employee in the Parks, Recreation and Cultural Services Department reimbursed the city more than $500 after charging family airline tickets to a city credit card the previous October.

Carney said he had previously warned the same employee in 2024 not to use a city credit card for personal expenses after a separate $20 purchase.

Audits reached different conclusions

While Carney was on administrative leave, accounting firm Lance, Soll & Lunghard LLP conducted an audit and reported that it found no evidence of fraud or attempted fraud by city employees during the 2023-24 fiscal year.

However, Carney alleges outside audits identified more than $1 million in accounting irregularities and cash-handling issues, along with instances of city credit card misuse. A separate audit conducted by Hoslett Forensics found employees had charged approximately $8,625 in improper expenses to city credit cards over the previous five years.

Carney was formally terminated in October 2025.

In the lawsuit, he alleges the city violated its own policies and state law and that he disclosed the concerns because he had both a fiduciary and legal duty to do so.

He further alleges city officials interfered with his ability to perform his duties and retaliated against him for reporting those concerns.

Carney is seeking damages for lost wages, salary, benefits and future earnings potential; harm to his reputation and career; attorney fees and litigation costs; interest; and any additional relief the court deems appropriate. Because the matter is scheduled for discussion in closed session Wednesday, city officials and council members declined to comment.

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This story was originally published June 16, 2026 at 12:58 PM.