DOJ Sues California Towing Firm Over Alleged Illegal Auctions of Service Members’ Vehicles Near Camp Pendleton

Justice Department alleges S & K Towing violated federal protections under the Servicemembers Civil Relief Act, selling up to 148 military-owned vehicles without court orders.

The U.S. Department of Justice has filed a federal lawsuit against a California-based towing company, alleging widespread violations of federal protections designed to safeguard active-duty military personnel.

According to the complaint, S & K Towing Inc., based in San Clemente, unlawfully auctioned or disposed of as many as 148 vehicles belonging to service members—many of which were towed from Marine Corps Base Camp Pendleton—without obtaining the court orders required under the Servicemembers Civil Relief Act (SCRA).

Filed March 25 in the U.S. District Court for the Central District of California, the lawsuit alleges that the company engaged in these practices between August 2020 and April 2025 while operating under an agreement with base law enforcement to provide towing services. Justice officials contend that S & K Towing failed to implement procedures to verify whether vehicle owners were active-duty service members before proceeding with lien sales or disposal.

“The SCRA exists to protect those who serve our country, particularly when deployments or training obligations limit their ability to respond to civil matters,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Towing companies must respect and abide by these protections.”

Under federal law, lienholders must obtain a court order before selling or disposing of a service member’s property if the individual is on active duty. The lawsuit alleges that S & K Towing ignored these requirements, even after being notified by a Camp Pendleton legal assistance attorney in May 2024. According to court filings, a company representative allegedly responded, “We do this all the time,” and continued the practice.

The complaint further states that some vehicles contained sensitive personal and military items, including uniforms, equipment, and awards, raising additional concerns about the handling of service members’ property.

The Justice Department is seeking monetary damages for affected service members, civil penalties, and court-mandated reforms to ensure compliance with federal law. Officials also emphasized that tools such as the Defense Department’s Defense Manpower Data Center database are readily available to verify military status—yet were allegedly not utilized by the company.

While California law permits towing companies to enforce liens through public sales or disposal, federal law supersedes those actions when service members are involved, requiring additional legal safeguards.

S & K Towing declined to comment on the allegations. It remains unclear whether the company continues to operate under its agreement with Camp Pendleton.

The case highlights ongoing challenges in enforcing SCRA protections, particularly for service members stationed at major installations or deployed for extended periods. Legal experts note that such violations can have lasting financial and operational impacts on military readiness and morale.

The Justice Department is urging any service members or dependents who believe their rights under the SCRA have been violated to contact their local military legal assistance office.

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-- By James W. Thomas

Masakela P. Rawls contributed to this article.

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