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Resident alleges fraud, improper practices by tow-company bidder for Placentia contract

Placentia City Council · July 1, 2025
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Summary

A longtime resident and former tow company manager alleged the leading bidder for the city's tow contract committed insurance fraud, lied to CHP and AAA, and performed illegal equipment installs; he urged the council to vet bidders thoroughly and offered to provide documentation.

Arthur Hernandez, a lifelong Placentia resident and tow‑industry worker, used his five minutes during oral communications to urge the council to vet applicants vying for the city's tow contract.

Hernandez alleged that a specific company (named in his remarks) had committed insurance fraud, falsified information to the California Highway Patrol and AAA, illegally installed a 1,000‑gallon tank at a facility without permits, tampered with truck emission systems and paid workers "under the table." "They've done insurance fraud... They lied to the CHP," he said, offering to provide documentation and urging the city not to award contract work to firms he described as "not an honorable company."

No city staff response to those allegations was recorded at the meeting; Hernandez said he had left voicemails and emails and was prepared to present evidence. The council did not act on the towing contract at this meeting but received the complaint as public comment for consideration during procurement review processes.