South OC Towing Company Sold Servicemember's Cars Illegally, DoJ Says

SAN CLEMENTE, CA — An Orange County towing company settled a lawsuit that claimed it illegally sold or disposed of almost 150 vehicles owned by military members.

The Department of Justice announced Tuesday that San Clemente-based S&K Towing agreed to pay $160,000 to resolve the lawsuit.

The lawsuit alleged that the towing company violated the Servicemembers Civil Relief Act by auctioning vehicles owned by servicemembers without required court orders.

According to the complaint, the company or disposed the vehicles belonging from Aug. 2020 to April 2025.

Many of the vehicles had been towed from Marine Corps Base Camp Pendleton, the complaint said.

The Department of Justice alleges the company violated the Servicemembers Civil Relief Act, or SCRA, which requires towing companies to obtain a court order before selling or disposing of vehicles owned by protected servicemembers.

According to the Justice Department, the law is meant to protect military personnel who may be deployed or otherwise unable to respond to notices regarding their property.

"The men and women who serve in our nation's military deserve peace of mind in knowing that their legal rights will be protected at home while they are away serving the United States," First Assistant U.S. Attorney Bill Essayli said in a statement. "It is unacceptable and illegal for a business to sell or dispose of these vehicles without abiding by the laws that protect service members."

Prosecutors said a Military Legal Assistance attorney contacted S&K Towing in May 2024 and informed the company that it was violating the SCRA.

A manager responded, "We do this all the time," according to the complaint.

Authorities claim the towing company continued to auction or dispose of vehicles owned by protected servicemembers even after being told of their military status.

Servicemembers or their dependents who believe their rights may have been violated are encouraged to contact an Armed Forces Legal Assistance Program office.

Locations are available at servicemembers.gov.