California Insurance Commissioner Ricardo Lara has condemned the widespread issue of illegal towing in Southern California, particularly in Los Angeles, likening it to “hostage-taking.”
Lara criticized towing companies for effectively holding vehicles for ransom, exploiting drivers in vulnerable situations for financial gain.
The problem is especially pronounced in areas such as Koreatown, where predatory towing practices and exorbitant fees have become increasingly common.
In response, a joint investigative team-comprising the California Department of Insurance, the California Highway Patrol (CHP), the Riverside County District Attorney’s Office, and the California Franchise Tax Board-conducted a two-year probe that uncovered an extensive scheme involving government employees and towing companies.
A Government Employee at the Center of the Scheme
At the heart of the fraud was a public employee.
According to investigators, Rosa Santistevan, a 56-year-old CHP employee, sold accident reports and related information to towing brokers, allowing tow trucks to arrive at crash scenes before drivers had even requested assistance.
The reports were passed to Andre Angelo Reyes, 37, a towing broker who distributed them to towing companies.
“Reyes befriended Santistevan and other CHP employees by donating to various CHP events and parties,” Lara said. “Santistevan printed and unlawfully sold thousands of traffic collision face pages to Reyes who would then provide the reports to Esmeralda Parga.”
Authorities searching the home of Esmeralda Parga, 27, of Pomona-one of the individuals charged in the case-discovered more than 3,500 CHP accident reports, underscoring the scale of the operation.
In total, 16 individuals have been indicted, including towing company operators from cities with large Korean-American communities, such as Los Angeles, Buena Park, Irvine, Anaheim, and Whittier.
Exploiting Drivers in Crisis
Investigators found that towing companies deceived drivers at crash sites by falsely claiming to have been dispatched by their insurance providers. Many motorists, shaken and disoriented after an accident, fell victim to the scam.
“This type of scam is preying on drivers at their most vulnerable moments?immediately after an accident?when they should be focused on their safety and next steps, not fighting to get their vehicle back,” Lara said while announcing the indictments.
Authorities believe the problem extends beyond the 16 people indicted so far, and the investigation remains active.
Lara urged the public to report any suspected illegal towing, emphasizing that complaints help law enforcement build cases against offenders.
“Our department is committed to protecting Californians from fraud, and this PSA is an important step in ensuring drivers know the warning signs and how to protect themselves,” Lara said. “If you suspect you’ve been targeted, report it immediately. Together, we can put an end to these predatory practices and hold bad actors accountable.”
Consumers can report illegal towing by calling (800-927-4357) or visiting the California Department of Insurance website at insurance.ca.gov.
BY YEOL JANG [jang.yeol@koreadaily.com]
