California Towing Company Accused of Illegally Selling Servicemembers’ Property
U.S. federal authorities have brought serious charges against a towing and vehicle storage company from San Clemente, California. It is accused of selling or disposing of vehicles belonging to nearly 150 U.S. armed forces members. The U.S. Department of Justice has intervened in the situation, accusing S & K Towing of violating the Servicemembers Civil Relief Act (SCRA).
According to the lawsuit filed by the federal government, the company allegedly sold or disposed of vehicles belonging to 148 servicemembers between August 28, 2020, and April 15, 2025. A significant portion of these vehicles were towed from the area of Marine Corps Base Camp Pendleton.
Although S & K Towing has a contract with Camp Pendleton, the SCRA requires towing companies to obtain a court order before selling or disposing of a vehicle belonging to an active-duty servicemember.
“The men and women who serve in our nation’s armed forces deserve peace of mind knowing their legal rights will be protected at home while they serve the United States. It is unacceptable and unlawful for a business to sell or dispose of these vehicles without following the laws that protect servicemembers,” said First Assistant U.S. Attorney Bill Esseliy.
Warnings Were Ignored, and Property Was Sold with Personal Belongings
A military legal assistance attorney contacted S & K Towing in May 2024, informing them that the company was violating the SCRA. However, the firm seemed unconcerned, reportedly responding, “We do this all the time,” and continued to tow vehicles belonging to active-duty servicemembers. Many vehicles were registered to addresses at Camp Pendleton, and in some cases, S & K allegedly auctioned them off even after being notified that the owner was on military duty.
The allegations go further, claiming that some cars were sold with personal belongings inside, including military gear, awards, and uniforms.
Consequences for the Company and Protection of Servicemembers’ Rights
“Towing companies must respect and comply with federal laws that protect members of our Armed Forces. Servicemembers are often away for extended periods due to training and deployments and may not know their car has been towed. The SCRA provides critically important protections, including notice and the ability to adjust towing and storage fees in light of their service,” said Assistant Attorney General Harmeet K. Dillon of the Justice Department’s Civil Rights Division.
The Department of Justice is seeking compensation for damages for those servicemembers whose cars were sold, as well as civil penalties against S & K Towing.
This case highlights a systemic problem in upholding servicemembers’ rights in civil legal relations, especially when they cannot physically protect their property due to their service duties. The company’s actions, as described, indicate a deliberate disregard not only for warnings but also for obvious signs that the vehicle owners were on active duty, such as registration addresses on a military base. The case also raises questions about the effectiveness of oversight mechanisms for government contracts with private businesses and the need to strengthen accountability for violations of special legislation protecting those who defend the country.