Federal charges have been laid upon the owner of a San Francisco towing company, with accusations of money laundering, mail fraud, and wire fraud stemming from what the authorities claim was a fraudulent insurance claim. The U.S. Attorney's Office of Northern California announced today that Jose Badillo of Jose’s Towing and Auto Towing, along with Jessica Najarro, was arrested and later released on a $50,000 bond. Their arrest follows a conspicuous FBI raid on locations related to Specialty Towing, known for a series of alleged illegal activities, including car towing and welfare fraud, the San Francisco Chronicle reports.

The raid wasn’t a small operation. Social media posts suggest dozens of law enforcement agents were at the Specialty Towing's Oakdale Avenue site. The actions took place not only on Oakdale Avenue but extended to Franklin Street and Lane Street, areas that have links to the various enterprises owned by Badillo, amid a broader federal investigation, an FBI spokesperson revealed. According to public records, Badillo owns a residential space on Lane Street, yet attempts to reach Badillo and Specialty Towing for comment were met with silence. Neither Specialty Towing nor a neighboring business, DMB Registration Service, answered phone calls on the day of the raid, as noted by The San Francisco Standard.

This series of events is not the first public scrutiny of Specialty Towing. Earlier this year, the company was thrust into viral fame after a Reddit user uploaded a video showcasing one of its trucks seemingly attempting to tow a car while it remained occupied in traffic. Moreover, San Francisco's City Attorney David Chiu halted any business dealings between the city and Specialty Towing in February, accusing them of wrongful tows and cash-driven extortion from car owners.

Local businesses and residents have aired grievances about Specialty Towing's behavior. Annie Ko, an employee at New Art Kitchen and Bath, located across from the towing company, conveyed her observations of the raid and shared her experiences of the firm's less-than-stellar reputation. "Their reputation is not the best, because they have been taking up the majority of the spots with their tow trucks," Ko said, as per The San Francisco Standard.