A California towing company allegedly auctioned off nearly 150 vehicles belonging to deployed servicemembers—and kept doing it even after federal lawyers warned them to stop.
When a Warning Means Nothing
The audacity staggers. In May 2024, a Military Legal Assistance lawyer contacted S&K Towing to explain they were breaking federal law by selling servicemembers’ vehicles without court authorization. The manager’s response—”We do this all the time”—wasn’t just dismissive. It was an admission. Rather than halt the illegal sales, S&K continued business as usual for nearly another year, adding to a pile of violations that now numbers 148 vehicles across five years. The Justice Department filed suit on March 25, 2026, targeting the San Clemente-based company for systematic defiance of the Servicemembers Civil Relief Act.
The Law They Ignored
The Servicemembers Civil Relief Act exists because deployed military personnel can’t exactly run down to the impound lot when they’re stationed overseas or training in another state. Born from the 1940 Soldiers’ and Sailors’ Civil Relief Act, SCRA requires companies to obtain court orders before selling or disposing of property owned by active-duty servicemembers. This isn’t bureaucratic red tape—it’s a safeguard against exactly what S&K allegedly did. Many of the auctioned vehicles were towed from Marine Corps Base Camp Pendleton, some registered to on-base addresses that screamed “military owner.” S&K held a contract with Camp Pendleton that explicitly required federal law compliance.
Who Pays the Price
The victims were primarily Marines—men and women who couldn’t retrieve their vehicles because they were doing what their country asked of them. Deployment leaves servicemembers vulnerable to situations civilians rarely face. Miss a tow notice because you’re overseas? Tough luck. Can’t contest an auction because you’re on a training exercise? Your car’s gone. S&K exploited this vulnerability systematically, prioritizing auction revenue over legal obligations. The financial losses compound: not just the vehicle value, but replacement costs, credit damage, and the practical chaos of losing transportation while managing military duties.
A Pattern of Contempt
First Assistant U.S. Attorney Bill Essayli captured the core offense: “The men and women who serve deserve peace of mind. It is unacceptable and illegal.” His office, alongside the DOJ Civil Rights Division’s Housing and Civil Enforcement Section, isn’t just seeking injunctions—they want monetary relief for every affected servicemember. Since 2011, DOJ has secured over 484 million dollars in relief for more than 149,000 servicemembers through SCRA enforcement. This case adds another chapter to a troubling narrative: contractors near military bases sometimes treat the troops they ostensibly serve as easy marks rather than protected citizens.
Nearly 150 Servicemembers’ Cars Auctioned Off Illegally, DOJ Lawsuit Alleges https://t.co/VbvFwc03za
— SP0PP (@SP0PPL3T0N) March 26, 2026
The lawsuit now sits in Santa Ana federal court with no reported settlement or response from S&K. The company’s silence speaks volumes, though perhaps not as loudly as that manager’s casual confession: “We do this all the time.” For the towing industry, especially firms operating near military installations, this case signals heightened scrutiny is coming. Compliance costs may rise, but that’s the price of doing business honestly. For the servicemembers whose cars vanished while they served, justice remains pending—but at least someone finally noticed they were being robbed.
Sources:
Feds Say O.C. Tow Yard Sold Off Marines’ Cars While They Were Deployed
DOJ Sues Orange County Towing Company for Illegally Auctioning Military Vehicles
S&K Towing Lawsuit: Military Vehicle Auctions and SCRA Violations
OC Company Illegally Towed, Sold Dozens of Service Member Vehicles