If this guy's the one who performed the dirty deed or not, it's his baby right now and regardless of what he admits he knows doesn't make it Ok to do what he seems to be doing?.
Questionable cars seem a new rendition of the old 'hot-potatoe' game where whoever ends up holding it has to pass it on to someone else...or stand up and admit defeat!.
The second choice obviously opens the door to bringing possible grief on themselves and others back through the line of previous owners...never mind the obvious legal costs of defending yourself through the process and being known as the squealer to the guys that were ahead of you to boot!.
Sorry if the guy who has it now is a good guy that has maybe been handed the hot-potatoe...but what he's doing now seems his attempt at offering to pass it on if someone is willing to accept it?.
If all's fine w/ what's existing now, it'd be no problem bringing the Feds into it to give their blessing about what's been done and obtaining something that states this in writing to pass on to potential buyers?. And good luck w/ that ever happening...more like they'd seize the car and it'd end up being stripped of it's goodness in some storage compound somewhere?.
Again there's other better cars out there you can find and enjoy without fear of the feds knocking on your door someday..
~ Pete