San Francisco’s City Attorney, David Chiu, has halted operations of Auto Towing and related companies. This action follows criminal charges against the owners, Abigail Fuentes and Jose Badillo, for a welfare fraud scheme. Previously, these owners were investigated for illegal towing activities in a commercial parking lot, limiting vehicle retrieval times, and insisting on cash payments. The current suspension prevents these companies from participating in city contracts.
Between 2018 and 2023, Fuentes and Badillo ran three towing businesses in San Francisco. These businesses generated over $2 million in gross annual income. In October 2023, the District Attorney’s Office of San Francisco charged them with several felonies linked to a suspected welfare fraud scheme. Fuentes, a former Senior Eligibility Worker at the Human Services Agency, allegedly approved Badillo’s welfare programs application without revealing their personal relationship.
Fuentes and Badillo are also suspected of misrepresenting their income and assets to qualify for public benefits. They both received Medi-Cal benefits, and Fuentes also benefited from CalFresh and CalWORKs. An investigation into their towing businesses led to the discovery of the alleged fraud.