A California towing company with a Marine Corps contract allegedly auctioned off nearly 150 vehicles belonging to deployed servicemembers—then brazenly continued the illegal practice even after federal lawyers warned them to stop.
Story Snapshot
- S&K Towing Inc. illegally sold 148 vehicles owned by active-duty servicemembers between 2020-2025 without required court orders
- Company manager dismissed legal warnings in May 2024, stating “We do this all the time” before continuing violations
- Department of Justice filed federal lawsuit seeking monetary relief for Marines stationed at Camp Pendleton
- Violations represent brazen defiance of the Servicemembers Civil Relief Act designed to protect deployed troops
Contractor Exploits Deployed Marines
S&K Towing Inc., a San Clemente-based company holding a contract with Marine Corps Base Camp Pendleton, stands accused of selling or disposing of 148 vehicles owned by active-duty servicemembers without obtaining legally required court orders. The Department of Justice filed suit on March 25, 2026, alleging systematic violations of the Servicemembers Civil Relief Act between August 2020 and April 2025. Many vehicles were towed directly from Camp Pendleton or registered to on-base addresses, making military ownership readily apparent to the company.
The alleged violations occurred despite contractual obligations requiring S&K Towing to comply with federal law. Servicemembers deployed overseas or unable to respond to legal notices lost their vehicles to auction while serving their country. First Assistant U.S. Attorney Bill Essayli condemned the practice as “unacceptable and illegal,” emphasizing that military personnel “deserve peace of mind” regarding their property while defending America. This case exemplifies how private contractors can exploit the very people who sacrifice for national security.
Defiant Response to Legal Warnings
What makes this case particularly egregious is S&K Towing’s response when confronted. In May 2024, a Military Legal Assistance lawyer contacted the company explaining the SCRA violations and legal requirements for handling military-owned vehicles. According to the Justice Department, a company manager responded dismissively, stating “We do this all the time.” Rather than correcting course, S&K Towing continued auctioning servicemembers’ vehicles for nearly another year until the federal lawsuit was filed. This represents deliberate defiance of federal protections specifically designed to shield deployed troops from predatory business practices.
The Servicemembers Civil Relief Act, dating back to the Soldiers’ and Sailors’ Civil Relief Act of 1940, requires companies to obtain court orders before disposing of property owned by active-duty military personnel. These protections exist precisely because servicemembers deployed overseas cannot defend their interests in civil matters. S&K Towing’s alleged conduct circumvented these safeguards, prioritizing auction revenue over legal compliance. The company’s contract with Camp Pendleton explicitly required adherence to federal law, making these violations doubly concerning for military families relying on base contractors.
Pattern of Government Contractor Abuse
This lawsuit exposes broader concerns about contractors serving military installations who view federal protections as obstacles rather than obligations. S&K Towing maintained its lucrative Camp Pendleton contract while allegedly stripping Marines of their property during deployments. The DOJ has enforced SCRA protections since 2011, securing over $484 million in relief for more than 149,000 servicemembers, yet violations persist. The towing industry near military bases faces heightened scrutiny, though this case suggests enforcement remains insufficient to deter bad actors seeking profit from America’s defenders.
Affected servicemembers now face financial losses, vehicle replacement costs, and the frustration of being exploited while serving overseas. The federal lawsuit seeks monetary relief, but recovered funds cannot restore trust in contractors who should support military communities. For conservative Americans who respect military service and demand accountability, this case represents everything wrong with government contracting—private companies enriching themselves at servicemembers’ expense while ignoring federal law designed to protect those who cannot protect themselves during deployment.
Sources:
Feds Say O.C. Tow Yard Sold Off Marines’ Cars While They Were Deployed – Hoodline
DOJ Sues Orange County Towing Company Illegally Auctioning Vehicles Military – CBS News
S&K Towing Lawsuit Military Vehicle Auctions SCRA – Fox LA
OC Company Illegally Towed Sold Dozens Service Member Vehicles – Patch
