The government hired a towing company to remove cars. However, the towing company was only authorized to tow cars that were blocking the street. They were too aggressive. They started towing cars that were in someone’s driveway or were parked legally. Also, they started charged too high a fee, for people who wanted to recover their car after it was towed.
The towing company was given a perverse incentive. They got paid based on number of cars towed. Therefore, the incentive is to tow as many cars as possible, even those that didn’t need to be towed.
There were several problems. The towing company was given a monopoly for removing cars from the street. The incentive was to tow as many cards as possible. In this case, it looks like they were caught. They might have gotten away with it if they weren’t so greedy and flagrant.