⏱ 2 min read
S&K Towing Inc., a San Clemente-based towing company, has been caught red-handed violating the Servicemembers Civil Relief Act (SCRA) by illegally auctioning off as many as 148 vehicles owned by members of the military in Orange County, California. The company, which had a contract with Marine Corps Base Camp Pendleton, made no effort to comply with the SCRA, which requires tow companies to obtain a court order before selling or disposing of a vehicle owned by an SCRA-protected servicemember. This alleged crime occurred over a period of time, with the Justice Department filing a lawsuit on March 25. The motive behind the company’s actions appears to be profit, with a manager at S&K Towing telling a Military Legal Assistance attorney, ‘We do this all the time.’
The lawsuit, filed in the U.S. District Court for the Central District of California, alleges that S&K Towing’s actions were a clear violation of the SCRA, which is designed to protect servicemembers from financial hardship while they are serving overseas. Despite being informed of their wrongdoing, the company continued to sell and dispose of vehicles owned by SCRA-protected servicemembers without obtaining court orders.
The Justice Department announced that S&K Towing Inc. has agreed to pay $160,000 to resolve the lawsuit. This settlement sends a strong message that all towing companies must recognize servicemembers’ rights and take the necessary steps to comply with the SCRA. Assistant Attorney General Harmeet K. Dhillon and First Assistant U.S. Attorney Bill Essayli emphasized the importance of protecting servicemembers’ rights and holding businesses accountable for violating federal laws.
The settlement will provide compensation to impacted service members and serves as notice to all businesses to comply with federal laws that protect our military. The case highlights the need for companies to prioritize compliance with the SCRA and respect the rights of servicemembers who are serving our nation.
📋 Key Facts
- Crime: White Collar Crime
- Defendant: California
- Location: CA
- Source: DOJ Press Release
