Any updates on CNC Motors?

I’d like to know also. I bought my car from them, but no long lasting grief for me. I’m glad I was aggressive in obtaining everything they promised, in the beginning.


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https://www.fontanaheraldnews.com/news/inland_empire_news/attorney-general-bonta-charges-two-people-in-8-million-embezzlement-and-fraud-case-in-san/article_b0e063c2-78e9-11ee-8d77-dfd027e5138c.html

 

I just heard that the owner got arrested and that his bail is $8 million.
Good! He screwed over so many people, I don’t feel the least bit bad for him.
I think we all understand trying to save your business during Covid, but what he did is unforgivable.


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Can someone give a brief overview of what he did?

 

CNC would take cars on consignment and sell them. They would not remit funds to the consignor, not provide a title to the buyer, or in some cases it seems, both.

 

That's horrendous. I hope everyone was made whole...but I'm almost certain that isn't the case.

Throw away the key.

 

The linked article above says more than $4mm outstanding to victims, so no, everyone has not been made whole.

 

it’s all too common in the used car world.
https://www.encinitasadvocate.com/news/story/2023-08-03/lawsuits-and-dmv-investigation-target-rancho-santa-fe-autos-for-alleged-fraud-breach-of-contract

 

Pretty bad overall, they took cash payments, didn't payoff the existing sellers obligations to their lenders, and sometimes, sometimes not, gave the titles to new owners. Problems were the titles weren't clear, and the lenders and sellers said hey give me back the car, to witch the buyers said, Hey, I paid for this car! Give me my titles. Both sellers and buyers got screwed. Lots of stuff online about it.

 

Apparently Clayton Thom was released from custody today after posting $8.7 million bail.

https://www.thedrive.com/news/owner-of-notorious-dealer-cnc-motors-charged-with-embezzlement-tax-fraud?utm_term=The%20Drive_Wire_11.08.2023&utm_campaign=The%20Drive_Wire_Actives_Dynamic&utm_source=Sailthru&utm_medium=email

 

Seems to be a recurring theme in the luxury market. Anthony Farrer did the same thing with watches to the tune of $5m. Timepiece Gentleman….


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They were a darling of dealerships for a while.

They also had representatives here on Fchat

good inventory and seemed like a decent place to do business.

sad to see it turn out the way it did.

once you step over the line, it makes it easier to do the next one.

bummer.

 

Anyone with extreme overhead and extreme lifestyle

 

he has 8.7 millions cash to pay bail!? wow.

 

Um, no, that's not how bail works.

It's usually through a bail bond, or 10% of the total bail amount. In his case, around 870k. That's the max, usually it's less than 10%, much less.

 

Doesn't the remaining 90% still need to be held up against actual/tangible collateral of the defendant?

 

Clayton probably has a house or condo he put up as collateral. Pretty soon it will be for sale. The cost of hiring lawyers to defend you and spending $700k on bail......wipes out your assets pretty quickly. In the end he will take a plea deal because the government has unlimited resources and he most certainly does not. My guess is that he will take a plea on one to two charges with up to three years of jail time.

He was stupid. Selling high end cars that belong to other people leaves a trail a mile wide to follow. Nobody is showing up with cash/gold bricks or bitcoin and the vehicle if sold most likely would be registered unless Clayton was loading them into containers for the Middle East. His most egregious charges are not paying taxes on his ill gotten gains.......embezzlement only affects the actual owners.

 

Actually, the way bail works is, he needs to have something worth $8.7 million.

The 10% is the Bail Bondsman’s fee that he doesn’t get back. If he has $8.7 million he could post that cash bail and when he’s done with his case, he gets all that back.

I’ve seen Bondsmen negotiate the 10% fee sometimes.


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Troubling that he had the collateral to post bail when most victims have not been made whole or compensated at all! Even if he went through a bail bond company, it’s still close to 900k he came up with. I know there are civil suits going and bankruptcy was declared.


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We're assuming he posted bail for himself.

That may not be a correct assumption.

 

Whatever happened to cashless bail? Is that not for white dudes committing fraud? I already know the answer.

 

You’d need a very generous friend to donate $870k to your cause that they’ll never get back.