A towing company in Virginia Beach has agreed to pay $90,000 to settle a federal lawsuit accusing it of illegally auctioning off the cars of military servicemembers.
Steve’s Towing was accused of auctioning off the vehicles of at least seven military servicemembers stationed in the Virginia Beach area between April 2019 and April 2022, including two Arizona-tagged automobiles belonging to a Navy SEAL deployed overseas in early 2020 when the cars were first towed.
Of the $90,000 payment, $67,500 will go to the seven service members mentioned in the federal complaint. Up to $12,500 will go to other military personnel whose vehicles may have been sold illegally and the remaining $10,000 is a civil penalty.
“This case began with a member of a Navy SEAL team who returned home from an overseas deployment, only to find that a towing company had auctioned off two vehicles that he had parked at a military base. This resolution will compensate all of the servicemembers whose vehicles were illegally taken from them while they were serving their country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division.
The cars of servicemembers are protected by the Servicemembers Civil Relief Act. If a towing company impounds the vehicle of a servicemember, they are required to first obtain a court order before any sale of the car.
In the Navy SEAL’s case, his Land Cruiser contained material evidence of his military service, including a bag of uniforms and a challenge coin.
Steve’s Towing, the government said, did not follow the law and had no policies in place to ensure compliance with the law.
The towing company will also be required to train employees in SCRA compliance and develop policies to ensure the SCRA is not violated going forward.
