An Orange County towing company is accused of illegally selling the vehicles of nearly 150 military service members, some while they were deployed overseas, according to a lawsuit filed Wednesday by the U.S. Department of Justice. The allegations center around S&K Towing, based in San Clemente, and its contract with the Marine Corps Police Department at Camp Pendleton.
The lawsuit claims S&K Towing systematically violated the Servicemembers Civil Relief Act (SCRA), a federal law designed to protect active-duty military personnel from certain civil legal actions, including the seizure and sale of their property. The Department of Justice alleges that between August 2020 and April 2025, the company auctioned, sold, or otherwise disposed of vehicles belonging to service members without adhering to the SCRA’s requirements.
“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 U.S. Attorney Bill Essayli in a statement. “This proves unacceptable and illegal for a business to sell or dispose of these vehicles without abiding by the laws that protect servicemembers.” The SCRA requires companies to obtain a court order before selling a service member’s vehicle, and mandates specific procedures to verify deployment status and protect their financial interests.
Contract with Camp Pendleton and Access to DoD Database
S&K Towing entered into a contract with the Marine Corps Police Department at Camp Pendleton in August 2020 to provide towing services for the base, which houses approximately 42,000 active-duty military personnel, according to the Department of Justice complaint. The complaint details that S&K Towing had access to a Department of Defense (DoD) database – the Defense Enrollment Eligibility Reporting System (DEERS) – which would have allowed them to verify a vehicle owner’s active-duty status. However, the DOJ alleges the company “had no policy or practice” of utilizing this database before selling towed vehicles.
This lack of due diligence, the DOJ argues, led to numerous violations of the SCRA. The complaint alleges instances where S&K Towing sold vehicles even after being informed that the owner was deployed. In some cases, personal belongings, including military equipment, uniforms, and awards, were left inside the vehicles when they were sold.
Allegations of Disregard for Legal Requirements
The lawsuit further claims that S&K Towing continued to sell vehicles belonging to service members despite being explicitly warned against doing so. In 2024, an attorney representing Camp Pendleton reportedly informed the company that it could not legally sell the vehicles without first obtaining a court order. According to the DOJ complaint, an S&K Towing employee responded with a dismissive, “we do this all the time.”
The Servicemembers Civil Relief Act, originally known as the Soldiers’ and Sailors’ Civil Relief Act of 1940, has been amended several times to expand protections for service members. The Department of Justice’s Servicemembers and Veterans Initiative is dedicated to enforcing these protections and ensuring that those who serve in the military are not unfairly disadvantaged in civilian legal matters.
What the DOJ is Seeking
The Department of Justice is seeking a range of remedies in the lawsuit. These include damages to compensate service members whose vehicles were wrongfully sold, civil penalties against S&K Towing, and any further relief the court deems just. The DOJ aims to ensure that S&K Towing implements policies and procedures to prevent future violations of the SCRA. The complaint does not specify the total amount of damages being sought.
S&K Towing declined to comment on the allegations when contacted for this article. Attempts to reach the company’s legal counsel were unsuccessful as of publication.
The case is being litigated in the U.S. District Court for the Central District of California. A court date has not yet been set. The Department of Justice encourages any service member who believes their rights under the SCRA have been violated to contact their local legal assistance office or the DOJ’s Servicemembers and Veterans Initiative.
This case highlights the importance of understanding and upholding the rights of those serving in the military. Protecting service members from financial hardship while they are defending the nation remains a critical priority for the Department of Justice and advocates for veterans’ rights.
The next step in this case will be S&K Towing’s response to the DOJ’s complaint, which is due within 21 days of being served. Further updates will be available through the U.S. District Court for the Central District of California’s website.
Have a comment on this story? Share your thoughts below.
