Federal prosecutors accused a Virginia Beach firm of illegally seizing and selling vehicles belonging to seven service members, including a member of SEAL Team 2 while he was deployed overseas.
The seizures by Steve’s Towing Inc. violate the Servicemembers Civil Relief Act, the Department of Justice’s lawsuit alleges.
The act says towing companies need a court order before auctioning off service members’ vehicles, and bars them from enforcing a storage lien while deployed, and for 90 days afterward.
The lawsuit, filed in U.S. District Court in Norfolk, seeks damages for affected service members, as well as a court order barring Steve’s Towing from illegally auctioning off their vehicles. The lawsuit also seeks a civil penalty.
“The flagrant disregard of a law designed to protect the rights of those in military service will not be tolerated,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division.
“We must put an end to unlawful business practices that bring harm and distress to those selflessly serving in our armed forces.”
The lawsuit details the case of a SEAL Team 2 Petty Officer 1st Class who had parked his 1992 Toyota Land Cruiser and 1987 Toyota 4Runner in a parking lot across from team headquarters at Little Creek.
The vehicles had Arizona license plates. While Steve’s Towing asked the Virginia Department of Motor Vehicles for vehicle records, it did not check with Arizona.
Thirty-six days after towing the vehicles, on Feb.7, 2020, Steve’s Towing filed liens to cover storage charges of $970 each for the vehicles, the lawsuit said.
That same day, Steven E. Gilliam, the company’s president, reported to the Virginia DMV that the company enforced its two $970 storage liens on the Land Cruiser and 4Runner by purchasing both from itself for $500 each, the lawsuit said.
The company never obtained a court order allowing it to dispose of the vehicles, the lawsuit said.
Gilliam did not return a call seeking comment.
The Servicemembers Civil Relief Act provides a variety of financial and housing protections to members of the military.
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