[legion]

Rules on this kind of thing vary from state to state. I'd be willing to bet that this kind of activity is concentrated in just a few states whose title laws make this possible. And generally once a vehicle is titled in one state, it is easy to titled anywhere.

A similar problem in the U.S. is "title washing". Damaged vehicles with salvage titles (marks vehicle as having been in a serious accident) are moved to states with lenient title laws. The vehicle is repaired (often poorly) and the title is clean. This is a particularly bad problem after hurricanes cause massive flood damage to a large number of vehicles.