Barbara Salvini, the HR Director for Newport Beach, is accusing City Manager Grace Leung of covering up an illegal gift of public funds in a lawsuit filed last month, claiming Leung forced her to change records to aid in a coverup and contributed to a hostile workplace. 

Salvini has been the city’s head of HR since 2015, and before that spent 10 years in a similar role for the city of Laguna Beach after working for over a decade as a medical malpractice attorney. 

None of the city staff mentioned in the suit returned requests for comment, but city spokesman John Pope responded with a short statement that the city denied the claims while declining to comment on any specifics. 

“We have looked into the allegations and found them to be without merit,” Pope said. 

The city has not yet issued a response to the suit in court. 

According to Salvini’s lawsuit, a personnel investigation into “alleged wrongdoing by certain employees” was conducted in the summer of 2023. 

To read the full filing, click here. 

Salvini is asking a judge to grant her damages for her treatment at city hall, and has officially requested a jury trial. 

Salvini claims that rather than having the HR department run the investigation, which is usually how the city manages personnel complaints, Leung oversaw the review and brought in an outside investigator. 

“An outside investigator revealed potential improprieties had occurred at the executive management level concerning the City Manager and the Fire Chief manipulating their leave banks in violation of City policy to obtain financial gain,” wrote Salvini’s lawyers in her suit. “The audit information was highly suggestive that an illegal gift of public funds had occurred.” 

To read a copy of the claim, click here. 

But Leung didn’t expand the investigation amidst those questions, according to court filings.

Instead, she forced Salvini and the city’s Finance Director Jason Al-Imam to change records, according to Salvini’s suit. 

In her lawsuit, Salvini alleges Leung “abused her position of authority and directed the Plaintiff and Finance Director to make changes to her records, and the records of the Fire Chief and to keep things ‘as confidential as possible.’” 

 “This was done to hide the wrongdoing.” 

Salvini claimed that after City Attorney Aaron Harp told a city council member about the investigation’s findings, saying it was at Salvini’s direction.

She also alleges Leung created a hostile work environment against her. 

In February, Salvini filed a complaint with the City Council, asking for them to look into Leung and Harp, who she also said was creating a hostile environment, and claiming the city had settled multiple cases related to Harp’s misconduct. 

“During her time with the department, Harp has lost his temper with her on multiple occasions, raising his voice, slamming his hands, standing over her (he is over six feet tall, Plaintiff is 5’5″), and threatening her job security,” Salvini alleges in her lawsuit.   

“Harp boasted how he has connections to friendly reporters who will report information as directed by him. Harp has clandestine lunches out of town with influential Newport Beach residents. When they talked about whether a certain director might become the City Manager, Harp said he would see to it that ‘that would never happen.’” 

Noah Biesiada is a Voice of OC reporter and corps member with Report for America, a GroundTruth initiative. Contact him at nbiesiada@voiceofoc.org or on Twitter @NBiesiada.