Onetime Oakland-based company convicted of illegally towing vehicles of residents, tax evasion
A former Oakland-based company and two people were convicted of illegally towing vehicles of Alameda County residents, according to prosecutors.
The Alameda County District Attorney's Office said in a statement Thursday that Private Property Impound Inc. pleaded no contest and was sentenced for one count of felony tax evasion -- and along with Wayne Daniel Russo, Jr., 37, and Stephanie Marie Gipson, 36 -- were sentenced to one misdemeanor count of illegally towing vehicles from private properties.
The charges against Private Property Impound stemmed from a 2018 news report that described it as "one of the worst offenders in the East Bay" for illegally towing cars. The District Attorney's Office conducted an investigation and filed charges against the company in 2020, but the case was largely inactive until 2023.
Prosecutors said the three defendants have agreed to pay nearly $500,000 to repay victims whose cars they illegally towed. They agreed to pay $75,000 to cover the costs of hiring the professional claims administration firm Verita to contact potential victims and administer the restitution fund.
According to prosecutors, the defendants have paid a total of over $333,000 to the California Franchise Tax Board in back taxes, interest, and investigative costs to satisfy all reported tax deficiencies for the years in question.
Prosecutors said that Russo Jr. was additionally sentenced to 90 days in county jail for his part in the illegal towing scheme, to be served on home detention with electronic monitoring, as long as all outstanding amounts are paid into the restitution fund.
Gipson, meanwhile, received a 90-day probationary sentence and was ordered to perform 50 hours of community service.
"I'm pleased that our reformed Consumer, Environmental, and Special Prosecution Unit was able to bring this complicated, long-running matter to a successful close," District Attorney Pamela Price said in a statement. "Illegal towing disproportionately affects our community's most vulnerable residents, for whom the family car can be a lifeline to attend work, get their kids to school, and seek medical care."
According to Price, her office will work with the claims administrator to create a formal claims form that will be mailed in three languages to 8,000 potential victims.