OC towing company sued by DOJ over alleged illegal auctions of Camp Pendleton military vehicles
ORANGE COUNTY, Calif. - The U.S. Justice Department has filed a formal lawsuit against San Clemente-based S&K Towing Inc. for allegedly violating federal law by selling or disposing of 148 vehicles belonging to military members.
The legal action claims the company systematically ignored the Servicemembers Civil Relief Act (SCRA) over a five-year period.
What we know:
According to the lawsuit filed in Santa Ana, S&K Towing illegally processed vehicles between August 2020 and April 2025.
Many of these vehicles were towed directly from Marine Corps Base Camp Pendleton.
Under the SCRA, towing companies are strictly required to obtain a court order before selling or disposing of property owned by protected servicemembers.
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The DOJ alleges that despite a contract with Camp Pendleton requiring compliance with federal laws, S&K Towing made no effort to follow these regulations.
In one instance, after a Military Legal Assistance lawyer informed the company of the violations in May 2024, a manager reportedly responded, "We do this all the time."
The company allegedly continued the illegal auctions even after this warning.
What we know:
"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," said First Assistant United States Attorney Bill Essayli.
"It is unacceptable and illegal for a business to sell or dispose of these vehicles without abiding by the laws that protect servicemembers."
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Assistant Attorney General Harmeet K. Dhillon added, "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."
What's next:
The government is seeking relief for the impacted servicemembers.
The Source: This report is based on a formal legal complaint and official statements released by the U.S. Department of Justice and the U.S. Attorney’s Office for the Central District of California.