CALIFORNIA—On July 14, the United States Attorney’s Office for the Central District of California announced that S&K Towing Inc., based in San Clemente settled a lawsuit that alleged the company violated the Servicemembers’ Civil Relief Act by illegally selling at auction 150 vehicles owned by members of the United States military. The company agreed to pay $160,000 to those impacted.
In 2003, Congress enacted the Servicemembers’ Civil Relief Act, which protects officers, enlisted personnel, and their families by allowing them to pause financial obligations, including loans and court proceedings.
On March 25, 2026, the Department of Justice filed a lawsuit. According to prosecutors, between August 2020 and April 2025, S&K Towing Inc. had a contract with Marine Corps Base Camp Pendleton, but the company violated federal law by failing to obtain a court order before selling or disposing of vehicles owned by U.S. service members.
In May 2024, a Military Legal Assistance Officer contacted the company to explain that the actions were illegal, but the company continued to engage in them. Many of the vehicles were registered to people who lived on Camp Pendleton.
S&K Towing Inc. is in the process of closing, but agreed that should it reopen, it will comply with the Servicemembers’ Civil Relief Act.
The lawsuit was brought by the Department of Justice’s Civil Enforcement Section, the Civil Rights Division, and the U.S. Attorney’s Office for the Central District of California.
