knight rider online

Having just re-watched 'Knight to King's Pawn' KI3T is seen being towed away and being stored in Area 51, however if I remember correctly in the episode 'A Knight in Shining Armour' KI3T tells Mike that he is 'the legal property of Knight Industries Research & Development' and in 'Knight to King's Pawn' Sarah becomes the new account holder of Knight Industries as well as the FLAG funds so surely Alex Torres was 'breaking the law' as it were for towing KI3T away, surely KI3T and his backup belong to Sarah and not the Government?

My take on this is that Knight Industries Research & Development is the gov't operation run jointly with Graiman. With Graiman out of the picture then the gov't takes over. Then when Sarah discovers Graiman's message and the account numbers that's when she re-institutes FLAG and has legal property of KI3T.
That, or the gov't takes what it wants when it wants and MAKES it legal...

Since Sarah reinstated FLAG, KI3T and all his tech becomes hers and FLAG's property, not the Government's....

Thanks for the answers guys!