Auto Towing, a company that profited from illegally towing parked cars, is debarred and prohibited from doing business with the City
SAN FRANCISCO (July 23, 2024) — City Attorney David Chiu announced today that an Order of Debarment was issued against Auto Towing, prohibiting the company from bidding on or being awarded contracts with the City and County of San Francisco. Auto Towing illegally towed cars from a private commercial parking lot and made it difficult for vehicle owners to retrieve their vehicles.
Following an administrative hearing, the appointed hearing officer ruled in the City’s favor and granted the City Attorney’s request for an Order of Debarment against Auto Towing, LLC. The Order will be in place for five years, the maximum amount of time entities can be debarred.
“Auto Towing engaged in predatory behavior and unfair business practices,” said City Attorney Chiu. “This company intentionally misled and scammed people out of hundreds of dollars by illegally towing cars. Our City has no interest in contracting with exploitative businesses engaged in illegal conduct.”
Background
In August 2023, the City Attorney initiated debarment proceedings against Auto Towing after the company violated multiple state and local laws by illegally towing vehicles from private property. Between February and May 2023, Auto Towing employees illegally towed several cars from a bank parking lot in the Portola neighborhood without the permission of the property owner. It is unlawful for a tow company to tow a car from private property without the authorization of the property owner.
Additionally, Auto Towing’s permitted operating location address is 1229 Underwood Avenue. However, Auto Towing towed vehicles to a different towing company lot located on Oakdale Avenue, making it more difficult for vehicle owners to locate and retrieve their cars.
Debarment is an administrative enforcement procedure that authorizes the City to ban contractors from applying for or receiving City contracts for up to five years. The debarment process often requires an administrative hearing before contractors accused of misconduct are prohibited from receiving City funds.
In order to give the City more tools to immediately address corrupt contractors, San Francisco passed legislation in 2020 that, among other things, allows the City to suspend contractors accused of certain crimes relevant to their ability to receive City funding. A suspension immediately bars a contractor from receiving City funds while the separate proceeding is ongoing. In February 2024, City Attorney Chiu suspended Auto Towing, LLC and several affiliated individuals and companies after the owners, Abigail Fuentes and Jose Badillo, were criminally charged in a welfare fraud scheme. The affiliated individuals and companies remain suspended.
The Order of Debarment against Auto Towing, LLC can be found here.
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