DOJ sues San Clemente towing company for selling, disposing of 148 military vehicles

The U.S. Department of Justice announced Wednesday that it has filed a lawsuit against a San Clemente-based towing company for allegedly illegally selling or disposing of approximately 150 vehicles belonging to active-duty military members in violation of federal law.
According to the complaint, S&K Towing Inc. sold or disposed of as many as 148 military-owned vehicles between August 2020 and April 2025; most of them were drawn from Marine Corps Base Camp Pendleton.
Federal authorities allege the company violated the Servicemember Civil Relief Act (SCRA), which requires towing companies to obtain a court order before selling or disposing of vehicles belonging to protected service members.
The Justice Department said the law is intended to protect military personnel who may be deployed or unable to respond to notices about their property.
“The men and women who serve in our nation’s military deserve the peace of mind that comes with knowing that their legal rights will be protected at home while serving in 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 complying with the laws that protect service members.”
The SCRA is designed to ensure that military members receive proper notice and legal protection, especially when they are absent for long periods of time due to training or deployments, officials said.
According to the Department of Justice, a Military Legal Aid attorney contacted S&K Towing in May 2024 and notified the company that it had violated the SCRA.
A manager allegedly responded, “We do this all the time,” according to the complaint.
Authorities allege that the company continued to auction or dispose of vehicles owned by protected soldiers even after they were notified of their military status.
Some of the vehicles were registered to addresses at Camp Pendleton, while others were sold even though the owner was said to be in the military, authorities said.
Servicemembers or their dependents who believe their rights may have been violated are encouraged to contact the Armed Forces Legal Assistance Program office. Positions are available at servicemembers.gov.
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