Duped

So, if I'm understanding this correctly, you don't know if either of the two vin's on the car is legit. One or both could be hot. You now have public record of this. You now have public record of your denial to pursue the legal ownership and your choice to deny making sure that it's not a chopped car or any of the sort, before proceeding.

And you're going to carry on? And spend more $ on it?

This isn't really that wise. Just saying....

Don't make this man out to be a criminal. He has a title..he has a Vin...he has a pile of parts he's turning into a car that he wants. He is doing NOTHING illegal or in my opinion, underhanded.
If you pull your head out of the Mopar rock it's stuck under, guys have been building Street Rods this way for like 75 years. It's an accepted practice.