A San Diego-based storage company, Across Town Movers, and its owner, Daniel E. Homan, have agreed to pay nearly $170,000 to resolve allegations that it unlawfully sold U.S. Navy service members’ stored goods.
According to federal authorities, the storage company had a practice of selling active-duty service members’ storage lots without obtaining necessary court orders. The practice allegedly violated the Servicemembers Civil Relief Act (SCRA), which protects the rights of service members while on active duty by suspending or modifying certain civil obligations.
The SCRA requires a storage lien to be enforced against service members during, or 90 days subsequent to, their period of military service without a court order. Across Town Movers allegedly ignored this requirement and sold the stored goods of several service members, including Master Chief Petty Officer Thomas E. Ward, now retired.
Master Chief Ward placed his valuable car parts and many household items into storage when he was deployed overseas. He entrusted Across Town Movers to keep his personal property safe until he returned to his home in San Diego. Just before completing his final tour, Master Chief Ward learned that Across Town Movers had auctioned all of his stored personal property, including rare, vintage car parts, without providing any notice or obtaining a court order.
The settlement resolves a lawsuit filed in March by the U.S. Attorneys’ Office for the Southern District of California and the Civil Rights Division. The lawsuit alleged that Across Town Movers had a practice of selling active-duty service members’ storage lots without obtaining necessary court orders. Among the aggrieved service members is Master Chief Petty Officer Thomas E. Ward, who will receive $150,000 as compensation for his auctioned personal property.
The consent order requires Across Town Movers to make systemic changes to its business practices, including developing new policies and procedures consistent with the SCRA and providing SCRA training to its employees. Across Town Movers is also enjoined from engaging in the same practices in the future.
Defendant/respondent: Across Town Movers, owned by Daniel E. Homan. Exact criminal charges: Unlawful sale of property. City and state: San Diego, California. Exact date: March 2023 (lawsuit filed). Sentence or outcome: $170,000 settlement. Dollar amounts: $170,000 (settlement), $150,000 (compensation to Master Chief Petty Officer Thomas E. Ward).
Related Federal Cases
Key Facts
- State: California
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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