Palatucci was born in Montella, Avellino, Italy. He graduated from the University of Turin, Faculty of Law in 1932. In 1936 he entered police service in Genoa and the following year he was assigned to Fiume. For 5 decades, Palatucci was believed to have been Fiume Chief of Police, and that he used his power to help the Jews until he got arrested. Even though already in 1994, historian Marco Coslovich published the documents showing that Palatucci never had more than a subordinate administrative role, in which he excelled and for which he was praised by his superiors, the misrepresentation of his position continued until the 2013, when the Holocaust Museum stated in its anniversary exhibition that Palatucci "used his power of Chief of Police to help the Jews".