The U.S. Department of Justice announced that San Antonio-based Vehicle Management Solutions, Inc. (VMS) will pay $280,000 to settle allegations that the company illegally sold or scrapped vehicles belonging to U.S. servicemembers in violation of federal law.
According to the Justice Department, VMS allegedly auctioned off approximately 93 vehicles owned by protected servicemembers without first obtaining the court orders required under the Servicemembers Civil Relief Act (SCRA).
"When members of our Armed Forces are called to fight for our country, they should not have to return home to find that their car has been illegally sold," said Assistant Attorney General Harmeet K. Dhillon of the Civil Rights Division. "Towing companies must comply with federal laws that protect servicemembers or face serious consequences."
U.S. Attorney Justin R. Simmons for the Western District of Texas said the case reflects the government's commitment to protecting military personnel and their families.
The Western District of Texas is proud to be home to countless military members and their families, as well as many veterans of our Armed Forces," said Simmons. "Deploying is hard enough. Worrying about the safety and security of one's personal property while deployed is a concern no member of our military should carry."
Federal officials said the investigation began after a servicemember filed a complaint alleging his vehicle had been towed and auctioned by VMS while he was deployed overseas in Kosovo in 2024.
The Servicemembers Civil Relief Act provides legal and financial protections to active-duty military personnel, including restrictions preventing towing companies from selling vehicles owned by protected servicemembers without first securing a court order.
Under the settlement agreement, VMS will pay $220,000 directly to affected servicemembers. The company will also pay a $60,000 civil penalty to the U.S. Treasury.
The Justice Department said it will continue to enforce federal protections for military personnel and hold companies accountable when servicemembers' rights are violated.
