Feds sue California towing company for illegally selling cars belonging to U.S. Military members

The U.S. Department of Justice (DOJ) recently filed a complaint accusing a California towing company of illegally auctioning off automobiles owned by members of the U.S. Military.

On March 25, 2026, DOJ filed a lawsuit against S & K Towing, Inc, based in San Clemente, California, accusing the company of violating the Servicemembers Civil Relief Act (SCRA).

Between August 28, 2020, and April 15, 2025, S & K Towing is accused of illegally selling or disposing of as many as 148 vehicles owned by servicemembers, many of which had been towed from Marine Corps Base Camp Pendleton.

“Even though S & K’s contract with Camp Pendleton required it to comply with all applicable federal and state laws, the company made no effort to comply with the SCRA, which requires tow companies to obtain a court order before selling or disposing of a vehicle owned by an SCRA-protected servicemember,” DOJ said in a news release announcing the suit.

Officials further allege that in 2024, a Military Legal Assistance attorney contacted S & K Towing and informed them that they were violating the SCRA. A manager reportedly told the attorney “We do this all the time,” and the company continued to sell and dispose of vehicles owned by SCRA-protected servicemembers without obtaining court orders, officials said.

“Some of the vehicles S & K sold or disposed of were registered to addresses on Camp Pendleton. In other cases, S & K auctioned vehicles even after they were told that the owner was in the military,” said DOJ.

“Towing companies must respect and abide by the federal laws that protect members of our Armed Forces,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Servicemembers are often absent for extended periods due to training and deployments and may not know that their vehicle has been towed. The SCRA plays an important role in providing these servicemembers with adequate legal protections, including notice and the opportunity to have towing and storage fees adjusted in light of their military service.”

“Servicemembers deserve peace of mind in knowing that their legal rights will be protected at home while they are away serving the United States,” said First Assistant United States Attorney Bilal A. Essayli for the Central District of California. “It is unacceptable for a business to sell or dispose of servicemembers’ vehicles without abiding by the laws that protect servicemembers.”