Here's the California Attorney General's press release from over 3 years ago about the scam. It explains better than I did about how it works. Weaver went to prison and thousands of car owners had to re-register their cars with proper titles, back taxes, and updated smog equipment. The investigations, in several states, continue today with more dealers and individuals being indicted.
http://ag.ca.gov/newsalerts/release....04&month=4