The Department of Justice has officially filed a lawsuit against San Clemente-based S & K Towing, Inc., alleging the company illegally auctioned off vehicles belonging to military members.
According to the federal complaint, the towing operator violated the Servicemembers Civil Relief Act (SCRA) by selling or disposing of as many as 148 vehicles between August 2020 and April 2025 without first obtaining the required court orders.
Many of the vehicles in question were towed directly from Marine Corps Base Camp Pendleton. Despite a contract with the base that mandated compliance with all federal and state regulations, the DOJ claims S & K made no effort to follow the SCRA.
This federal law is designed to protect active-duty personnel, who may be deployed or stationed away from home, by requiring a judge’s approval before a towing company can sell their property.
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The investigation highlights a specific incident in May 2024, when a Military Legal Assistance attorney reportedly contacted the company to warn them they were breaking the law.
A manager at S & K Towing allegedly dismissed the warning, telling the attorney, “We do this all the time.” Following that conversation, the company continued to auction off vehicles, even in cases where the cars were registered to Camp Pendleton addresses or after staff were explicitly told the owner was in the military.
“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 Civil Rights Division. Dhillon noted that servicemembers are often away for training or deployment and may not even realize their car 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.”
First Assistant U.S. Attorney Bilal A. Essayli for the Central District of California added that it is “unacceptable” for a business to dispose of these vehicles while owners are away serving the country. Since 2011, the Justice Department has recovered more than $484 million for roughly 149,000 servicemembers through SCRA enforcement.
The case is currently being handled by the Civil Rights Division’s Housing and Civil Enforcement Section alongside the U.S. Attorney’s Office. Military members or dependents who believe their rights have been violated are encouraged to contact their nearest Armed Forces Legal Assistance Program Office.
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