Towed at Camp Pendleton, Sold Without Permission: DOJ Sues California Company for Auctioning 148 Servicemembers’ Vehicles
The U.S. Department of Justice has filed a lawsuit against a Southern California towing company, alleging it illegally auctioned off vehicles belonging to active-duty servicemembers in violation of federal law.
The civil complaint, filed in federal court, accuses S & K Towing, Inc., based in San Clemente, of violating the Servicemembers Civil Relief Act (SCRA), which provides legal protections to military personnel, including restrictions on the sale of their property without court approval.
“Towing companies must respect and abide by the federal laws that protect members of our Armed Forces,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Servicemembers are often absent for extended periods due to training and deployments and may not know that their vehicle has been towed. The SCRA plays an important role in providing these servicemembers with adequate legal protections, including notice and the opportunity to have towing and storage fees adjusted in light of their military service.”
According to the lawsuit, the company sold or otherwise disposed of as many as 148 vehicles owned by servicemembers between August 2020 and April 2025. Many of the vehicles had been towed from Marine Corps Base Camp Pendleton, one of the largest military installations on the West Coast.
Federal law requires towing companies to obtain a court order before selling or disposing of vehicles owned by servicemembers who are covered under the SCRA. The law is intended to protect military personnel who may be deployed or otherwise unable to respond to towing or storage issues involving their property.
Prosecutors allege that S & K Towing failed to comply with those requirements despite contractual obligations to follow all applicable laws. The company’s contract with Camp Pendleton included provisions mandating adherence to federal statutes such as the SCRA.
The complaint also cites a May 2024 interaction between a military legal assistance attorney and a manager at the company. According to the Justice Department, the attorney informed the company it was violating the law, but the manager indicated the practice was routine. Authorities allege the company continued auctioning vehicles without court authorization even after being put on notice.
In some instances, the lawsuit alleges, the company sold vehicles registered to addresses on the base. In others, vehicles were auctioned after the company had been informed that the owners were members of the military.
“Servicemembers deserve peace of mind in knowing that their legal rights will be protected at home while they are away serving the United States,” said First Assistant United States Attorney Bilal A. Essayli for the Central District of California. “It is unacceptable for a business to sell or dispose of servicemembers’ vehicles without abiding by the laws that protect servicemembers.”
Bank CEO Siphoned Millions, Evaded Venezuela Sanctions, Then Pleaded Guilty as His Bank Collapsed
The former chief executive of a Puerto Rico-based international bank has pleaded guilty to federal charges stemming from a yearslong scheme to defraud the institution and evade U.S. sanctions tied to Venezuela, according to the Justice Department.
Tomás Niembro Concha, 64, of Miami, admitted in federal court to conspiracy to commit wire fraud and conspiracy to violate the International Emergency Economic Powers Act. Prosecutors said the conduct involved siphoning tens of millions of dollars from Nodus International Bank and engaging in prohibited financial dealings with a sanctioned individual.
According to court filings, Niembro and his associates orchestrated a series of transactions between 2017 and 2023 that concealed their personal financial interests from the bank’s board, executives and regulators. Authorities said the scheme contributed to the bank’s collapse in 2023.
Prosecutors allege that Niembro, along with the bank’s board chairman, used the institution to finance their own ventures through undisclosed loans and investments. In one instance, the bank invested $11 million in a Miami-based lender, funds that were then loaned back to Niembro and his associate. Officials said those transactions were structured to appear legitimate while benefiting the defendants personally.
“The defendant abused his position as CEO, turning the bank he managed into his own personal ATM and unlawfully transacting with a sanctioned individual,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “The defendant’s crimes undermine the integrity of our financial system, threaten economic prosperity, and harm national security. The Criminal Division will investigate and prosecute fraudsters to protect financial markets and promote safety and prosperity for all Americans.”
“This defendant used his position as CEO to siphon more than $24 million, hide conflicts of interest, and help drive the bank’s collapse,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. “The scheme also involved efforts to evade U.S. sanctions tied to Venezuela’s state-owned oil company, PDVSA. As a career prosecutor and former state trial judge, I’ve learned that following the money reveals the truth. Here, it exposed both fraud and sanctions violations. We will hold accountable anyone who abuses our financial system for personal gain.”
In a separate set of transactions, Niembro and his co-conspirators arranged for the bank to purchase at least 47 promissory notes valued at approximately $25.3 million from a company they controlled. Prosecutors said the purchases were approved under false pretenses and allowed the defendants to divert proceeds for personal use.
As regulators in Puerto Rico moved toward liquidating the bank in early 2023, prosecutors said Niembro and others attempted to mask the scheme by transferring a loan portfolio back to the bank to offset outstanding debts tied to the earlier transactions.
The case also involves violations of U.S. sanctions related to Venezuela. Authorities said Niembro conspired to conduct financial transactions with an individual designated by the U.S. Treasury Department for supporting Venezuela’s state-owned oil company. Prosecutors allege that after obtaining limited authorization for a foreclosure, Niembro and the sanctioned individual arranged a separate, undisclosed deal to transfer ownership of a New York property back to the individual through a third party, in violation of federal sanctions.
Niembro faces up to 20 years in prison on each count. His sentencing is scheduled for June 8. As part of his plea agreement, he has agreed to forfeit at least $16.9 million, representing proceeds from the fraud scheme
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