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U.S. Sues OC Towing Firm for Illegally Auctioning Servicemembers’ Vehicles

Posted on March 25, 2026

SANTA ANA, Calif.

Federal prosecutors sued San Clemente-based S&K Towing Inc., alleging it illegally auctioned up to 148 vehicles owned by servicemembers from August 2020 to April 2025 without required court orders.

Many vehicles were towed from Marine Corps Base Camp Pendleton. Federal law bars the sale of servicemembers’ vehicles without a court order, but prosecutors say the company ignored those requirements despite contractual obligations to follow the law.

Authorities said S&K continued the practice even after a May 2024 warning from a military legal assistance attorney, allegedly responding, “We do this all the time.”


Key Facts

  • Company: S&K Towing Inc. (San Clemente)
  • Law cited: Servicemembers Civil Relief Act
  • Time frame: Aug. 2020 – April 2025
  • Vehicles: Up to 148
  • Location: Many towed from Camp Pendleton
  • Violation: No court orders before auctions
  • Warning: May 2024; conduct allegedly continued

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