Towing Company Faces Lawsuit from DOJ Over Claims of Illegal Auctions for Military Vehicles at Camp Pendleton

DOJ Sues S&K Towing Over Alleged Violations of Servicemembers Civil Relief Act

ORANGE COUNTY, Calif. – The U.S. Justice Department has initiated legal action against S&K Towing Inc., based in San Clemente, accusing the company of unlawfully auctioning 148 vehicles owned by military servicemembers. The lawsuit, filed in Santa Ana, alleges that S&K Towing violated the Servicemembers Civil Relief Act (SCRA) from 2020 to 2025 by failing to obtain necessary court orders before disposing of the vehicles.

The allegations indicate that a significant number of these vehicles were towed from Marine Corps Base Camp Pendleton. Despite a contractual obligation to adhere to federal regulations, S&K Towing reportedly continued its practices without regard for the protections afforded to servicemembers under the SCRA.

During the five-year period, military legal assistance warned the towing company about its violations. A manager at S&K Towing allegedly responded dismissively after being informed in May 2024, stating, "We do this all the time." Following this warning, the company continued its auctioning activities.

First Assistant United States Attorney Bill Essayli emphasized the importance of protecting the rights of military personnel, stating, "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." He underscored the illegality of the company’s actions.

Assistant Attorney General Harmeet K. Dhillon highlighted the potential consequences of these violations, noting that servicemembers often remain absent for extensive periods due to training or deployments, leaving them unaware of the towing of their vehicles. The SCRA provides crucial legal safeguards for these individuals.

In light of these allegations, the government is pursuing relief for the impacted servicemembers.