A California towing company exploited deployed servicemembers for profit, illegally auctioning off nearly 150 military-owned vehicles while their owners served overseas, openly defying federal law even after being warned by military attorneys.
Story Snapshot
- S&K Towing Inc. sold 148 vehicles belonging to active-duty servicemembers without court orders between 2020-2025
- Company manager dismissed legal warnings in May 2024, stating “We do this all the time” before continuing violations
- DOJ lawsuit seeks monetary relief for Camp Pendleton Marines who lost vehicles while deployed and unable to respond
- Violations represent brazen exploitation of servicemembers’ sacrifices while profiting from their absence
Contractor Defies Federal Protections for Deployed Troops
The Department of Justice filed a federal lawsuit on March 25, 2026, against S&K Towing Inc. of San Clemente, California, alleging systematic violations of the Servicemembers Civil Relief Act. The company allegedly sold or disposed of 148 vehicles owned by active-duty military personnel between August 2020 and April 2025, primarily Marines stationed at Camp Pendleton. Federal law requires court orders before auctioning servicemembers’ property, protections designed to shield deployed troops from default actions when they cannot respond to legal notices. S&K held a contract with Camp Pendleton explicitly requiring federal law compliance yet ignored these basic protections.
Company Continues Violations After Direct Warning
In May 2024, a Military Legal Assistance attorney contacted S&K Towing to explain the company’s violations of SCRA protections. A company manager responded with dismissive arrogance, stating “We do this all the time,” according to the DOJ complaint. Rather than correcting course, S&K continued illegally auctioning military-owned vehicles for nearly another year. This deliberate defiance demonstrates contempt not just for federal law but for the servicemembers who entrust contractors near military bases to follow basic legal standards. The company prioritized auction revenue over the property rights of Americans serving overseas, unable to defend their interests while deployed.
Pattern Reveals Exploitation of Military Vulnerability
Many vehicles towed by S&K were registered to on-base addresses or clearly flagged as military-owned, yet the company proceeded with auctions without seeking required court authorization. The Servicemembers Civil Relief Act, originating from World War II-era protections, exists precisely because deployed personnel cannot respond to legal proceedings or reclaim property. S&K’s actions represent a calculated exploitation of this vulnerability. First Assistant U.S. Attorney Bill Essayli stated servicemembers “deserve peace of mind” and called the violations “unacceptable and illegal.” For families already stretched thin by deployments, losing a vehicle to an illegal auction adds financial devastation to the sacrifices military service demands.
Lawsuit Seeks Justice for Victimized Servicemembers
The DOJ’s Civil Rights Division and U.S. Attorney’s Office for the Central District of California are pursuing monetary relief for the approximately 148 affected servicemembers. Since 2011, DOJ enforcement of SCRA protections has secured over $484 million in relief for more than 149,000 servicemembers, establishing clear precedents that contractors cannot ignore federal safeguards. The lawsuit, filed in Santa Ana, remains active with no reported settlement or response from S&K Towing. This case underscores a troubling reality: while Americans debate foreign wars and military commitments, contractors at home exploit the very troops sent to fight, profiting from their absence with impunity until federal prosecutors intervene.
Sources:
Feds Say O.C. Tow Yard Sold Off Marines’ Cars While They Were Deployed
DOJ Sues Orange County Towing Company for Illegally Auctioning Vehicles Owned by Military Members
S&K Towing Lawsuit: Military Vehicle Auctions and SCRA Violations
OC Company Illegally Towed, Sold Dozens of Service Member Vehicles















