Multi-Million-Dollar Con At IE Auto Dealership Dupes Dozens: CA AG

INLAND EMPIRE, CA — Two people were charged with dozens of felonies between them after they allegedly perpetrated a con in the Inland Empire that duped 35 people and defrauded the state, according to an announcement Wednesday from the office of California Attorney General Rob Bonta.

Clayton David Thom, 50, and Valerie Jean Tanaka, 61, were arraigned Tuesday afternoon at the San Bernardino County Superior Court in Rancho Cucamonga. Thom pleaded not guilty to 37 counts of grand theft, one count of grand theft from an elder, 10 counts of filing a false sales tax return, and three counts of failure to file a sales tax return. Tanaka pleaded not guilty to nine counts of filing a false sales tax return. Both were also facing four special allegations stemming from the felony charges.

According to Bonta's office, Thom operated the now-defunct Upland high-end auto dealership, CNC Motors. Tanaka was his business manager.

From 2018 to 2021, Thom stole from his customers by first persuading them to place high-value vehicles on consignment at his dealership, sometimes convincing them to leave their titles with him. The owners would then sign contracts that promised them payment within 20 days of their vehicle’s sale, Bonta's office said.

After selling the clients’ consigned cars and collecting the proceeds, Thom pocketed the money. Additionally, he allegedly prevented customers who purchased consigned vehicles from receiving legal ownership, according to the attorney general's office.

"He did not endorse, date, and deliver the certificates of ownership and registration, or in some cases, delivered forged titles," Bonta's office said.

Some of the pricier vehicles involved included a McClaren Spider, Maserati, Tesla, Mercedes-Benz, Ferrari, Porsche, Corvette, Jaguar, Hummer, Audi, a 1970 Chevrolet Chevelle and a 1975 Lincoln Mark IV, according to the criminal complaint filed against Thom and Tanaka.

With Tanaka's help, Thom allegedly collected but failed to remit around $4.4 million in sales tax to the state from 2017 to 2021, according to the AG.

The California Department of Tax and Fee Administration, along with the California Department of Motor Vehicles, investigated the case and made the arrests.

“My office is committed to protecting hardworking Californian consumers from financial crimes,” Bonta said. “I am grateful to my legal team and our state agency partners for their incredible work in this case. Fraud against Californians and against the state will not be tolerated by the California Department of Justice.”

A copy of the complaint can be found here.

A retaliatory website called claytonthom.com calls Thom a "Liar, Con Artist, and Thief."

"The goal of this website to expose the truth about Clayton Thom and his criminal associates ... . This Ponzi scheme has knowingly been operating for several years ... . We will make sure that every detail about Clayton Thom is exposed for the public to see," the site reads.

Last week, the Riverside County District Attorney's Office announced a similar case out of Murrieta. Read more: Murrieta Man Charged With 18 Felonies In Luxury Car Scheme