On Wednesday (25th), the U.S. Department of Justice announced the indictment of a towing company in Southern California, accusing it of illegally auctioning and disposing of vehicles belonging to active-duty military personnel.
S&K Towing, Inc., headquartered in San Clemente, Orange County, faces charges of violating the Servicemembers Civil Relief Act (SCRA) by unlawfully selling and disposing of 148 vehicles belonging to active-duty military personnel between August 28, 2020, and April 15, 2025, many of which were towed from the nearby Camp Pendleton marine base.
Despite the service contract between Camp Pendleton and S&K Towing requiring compliance with all applicable federal and state laws, the company is accused of failing to diligently adhere to the SCRA. The law explicitly mandates that towing companies must obtain court authorization before selling or disposing of vehicles under the protection of active-duty military personnel.
In May 2024, a military legal aid attorney contacted S&K Towing, clearly pointing out their violation of the SCRA. A manager from the company responded, saying, “We’ve always done it this way.”
Following the negotiation, S&K Towing continued to dispose of vehicles belonging to active-duty military personnel without court orders, with some vehicles registered at addresses within the Marine Corps base. In some instances, despite the company being aware that the owners were active-duty military personnel, they proceeded with the auctions.
“Active-duty military personnel are often away from home for extended periods due to training and deployment, and may have no way of knowing that their vehicles have been towed,” said Harmeet K. Dhillon, Assistant Attorney General for the Civil Rights Division of the Department of Justice. “The SCRA plays a crucial role in protecting military personnel rights, including the right to notification and the opportunity to request adjustments to towing and storage fees based on their service circumstances.”
Bill Essayli, the Chief Federal Prosecutor for the Central District of California, stated, “Active-duty military personnel deserve the peace of mind that their legal rights at home are properly protected while they are serving the country abroad. Any business entity not in compliance with laws protecting military personnel, by unlawfully selling or disposing of military vehicles, is completely unacceptable.”
The case is currently being handled by the Housing and Civil Enforcement Section of the Civil Rights Division of the Department of Justice, as well as the U.S. Attorney’s Office for the Central District of California. Since 2011, the Department of Justice has fought for economic compensation and relief totaling over $484 million for more than 149,000 active-duty military personnel through strict enforcement of the SCRA.
According to the company’s website, S&K Towing was established in 1997, serving Orange County and three major highways and four toll roads. The company has partnerships with the California Highway Patrol and the Orange County Police Department to assist in towing tasks for official purposes.
In addition to towing, the company also offers roadside assistance and monthly storage services, including tire changes, jump-starts, vehicle unlocking, fuel delivery, and rescue assistance from being stranded. They also hold vehicle auctions weekly in Aliso Viejo.