I believe the poster said the car was parked in Zoned parking (requires a neighborhood permit, AKA illegaly parked on a public street).
(As mentioned early in the thread) Cities usually contract a towing company to either respond to a police call, or to act on their own - no zone parking permit, tow the car - in which case, the towing company has the legal authority to remove the car, and get paid for doing so.
Usually in zoned parking, residents have their permits / stickers, and usually some "guest passes" they can hand out to their visitors.
The base assumption here is that it was a "legal" tow, and that the guy illegally parked, then illegally tresspassed, then illegally removed property from the legal possesor (theft of service, GTA, fraud -since he (may have) obtained access through misrepresentation - possibly B&E) State and local laws are all different. Prosecutors are all different. What gets charged, and what goes to court will vary by location.
The towing company ABSOLUTELY has the guys plate number, and ABSOLUTELY will know that he hasn't paid for the car. At some point, they will call the cops (the car is missing and they don't know where it went). The cops will ABSOLUTELY check with the owner of the car and see he has it ... and tell the towing company he has it. From there it's a slam-dunk. The guy doesn't have a receipt saying he's paid for it, the towing company doesn't have a record that it was paid for. There is no way the guy can prove he got the car through legal means. He's hosed. He's toast. It's gonna cost him MAJOR bucks at the very least.
If it goes long enough, the towing company can declare the car abandoned (since it's been "sitting in their yard" for months) and sell it. Once it's officially abandoned, the towing company owns the title, and they sell it off to cover their costs.
At that point, the guy is driving (by any definition) a stolen vehicle (he has no title to it, and no permission to drive it from the owner).
If the car is *illegally* towed, then call the cops, and complain to whatever city organization that regulates the towing. Then, if necessary, take 'em to court to recover costs and damages.
Certainly, there are a jillion ways this could go, there are so many variables. The only way the guy will get off cheap is if the towing company is so poor at their administration that they *never* find out the car is gone (not likely, given the insurance requirements, the law, and the nature of the business).
.02
Scott