Clayton Thom, the former owner of Upland exotic-car dealership CNC Motors, was charged in late 2023 with 51 felony counts tied to an alleged consignment fraud and tax evasion scheme. California Attorney General Rob Bonta’s office says Thom stole more than $4 million from 35 consignment clients between 2018 and 2021 and failed to remit roughly $4.4 million in sales tax to the state. He has pleaded not guilty.1California Department of Justice. Attorney General Bonta Announces Charges, Arraignments Over $8 Million
How the Alleged Scheme Worked
CNC Motors sold rare and luxury vehicles on consignment, handling marketing, maintenance, and paperwork for owners in exchange for a cut of the sale. Owners signed contracts promising payment within 20 days of a sale.2The Drive. Well-Known Supercar Dealer CNC Motors Accused of Stealing Cars in Massive Alleged Fraud
Prosecutors allege that from 2018 through 2021, Thom convinced owners to consign high-value cars and hand over their titles, then sold the vehicles and kept the proceeds. Investigators say he used consigned cars to pay off personal debts and to secure loans. On the buyer side, he allegedly withheld or forged titles so purchasers could not legally register the cars they had paid for.1California Department of Justice. Attorney General Bonta Announces Charges, Arraignments Over $8 Million
Victims and investigators compared the pattern to a Ponzi scheme, with money from new sales going to older debts rather than to the owners whose cars had just sold.3CBS News Los Angeles. Upland CNC Motors DMV Investigation Customers reported bounced checks, cars sold without their knowledge, and unanswered phone calls.4NBC Los Angeles. Classic Car Owners CNC Motors Upland Consignment Sale Dealership
How It Unraveled
Complaints began surfacing publicly around October 2020 and grew through early 2021 on the Better Business Bureau, Yelp, and Google.2The Drive. Well-Known Supercar Dealer CNC Motors Accused of Stealing Cars in Massive Alleged Fraud By April 2021, both the California Department of Motor Vehicles and the Upland Police Department had confirmed active investigations.4NBC Los Angeles. Classic Car Owners CNC Motors Upland Consignment Sale Dealership The dealership closed that same month, and the DMV eventually referred the case to the California Department of Justice.5Daily Bulletin. Former Owner of High-End Upland Auto Dealership Charged With Theft, Tax Fraud By June 2021, the showroom was boarded up.3CBS News Los Angeles. Upland CNC Motors DMV Investigation
The Criminal Charges
On November 1, 2023, Attorney General Bonta announced felony charges against Thom, then 50, and his former business manager Valerie Tanaka, 61, in San Bernardino County Superior Court. Thom faces:
- 37 counts of grand theft covering more than $4 million taken from 35 victims between 2018 and 2021
- One count of elder theft involving an unnamed elderly victim
- 13 counts of tax fraud, charged jointly with Tanaka, covering roughly $4.4 million in sales tax collected but not remitted to the state between 2017 and 2021
Combined alleged losses exceed $8 million.1California Department of Justice. Attorney General Bonta Announces Charges, Arraignments Over $8 Million Tanaka was separately charged with nine counts of filing a false sales tax return, along with four special allegations.6Patch. Multi-Million Dollar Con: IE Auto Dealership Dupes Dozens
Arraignment, Pleas, and Bail
Thom was arrested on October 30, 2023, and held at the West Valley Detention Center on $8.7 million bail. Both defendants were arraigned the next day and pleaded not guilty to all charges. Tanaka was released on her own recognizance. Thom posted the full bail amount and was released on November 8, 2023.7The Drive. Owner of Notorious Dealer CNC Motors Charged With Embezzlement, Tax Fraud5Daily Bulletin. Former Owner of High-End Upland Auto Dealership Charged With Theft, Tax Fraud
Where the Case Stands
CNC Motors has been described as bankrupt in reporting after the criminal charges were filed.8Follow Our Courts. Upland Luxury Car Dealer Pleads Not Guilty to 38 Criminal Counts A bankruptcy case in the U.S. Bankruptcy Court for the Central District of California, case number RS-25-17408-SY, includes a notice of sale for an automobile with a sale date of July 16, 2026.9U.S. Bankruptcy Court, Central District of California. Notice of Sales – RS-25-17408-SY
Both defendants have maintained their not-guilty pleas. No trial date, plea agreement, or resolution has been publicly reported.