Hi again.

Yes, the owner does have both a moral and a legal obligation to fully disclose this, and the courts have agreed repeatedly that this is fraud. Think of it this way. Let's say that you buy a Picasso at auction for Picasso money. You have the painting inspected and it turns out that the signature is indeed that of Picasso, but the rest of the painting was done by some guy in Reno a month before you bought it and he had grafted Picasso's signiture onto his painting. Are you ok with having paid Picasso money for a painting that isn't a Picasso? This is known as a re-body and is outright illegal in most states because they are real funny about altered VINs. It is morally wrong because what you would be selling is not what the person believes that they are buying. There are countless examples of people doing this sort of thing with cars, but, that does not create some sort easement that makes this be anything other than a bogus car. A lot of people doing it doesn't make it ok. If he does this, and then sells the car, the new owner discovers this and sues him, he will lose the suit. For sure. And, the penalty stroke is a heavy one. This also varies from state to state, but, in Texas, you pay back three times the amount that you sold the car for, along with getting stuck with the legal fees of both parties and court costs. Again, there are many cases that do fall into a grey area and are questionable, but this is not one of those cases. The original poster would be well advised not to do this and then sell the car to someone as an S code car, because it is not, and he would get pounded in court. For sure. :gringreen
You misunderstood, I ment the seller of the mustang in the link. How is it any differnt if I own a 66 Mustang Converitble replace 99% of it and weld the old vin back to it? (I am not disagreeing with you, I am just saying that it is a grey area in the market) the 66 Mustang in the link is no more a 66 mustang A code then the 69 Mustang in question would be a 69 Mustang S code. Because in both cases the cars would end up being basicly brand new shells with the old vins attached to replacement sheetmetal. The law is very clear on this, but my point is, that the concept of original body, or "restoration" is getting fuzzy because people are now buying new bodies, or buying 99% new sheetmetal and cutting the whole car apart.
If you follow the letter of the law every shop that has ever changed a front inner fender on a Mustang should be fined and jailed. But the intent of the law is stop people from selling stolen cars, and to stop people from ripping each other off. My point in playing devils advocate is that there are cars out there being built with all new parts that are in reality rebodied just like this 69 would be. But the community seems to accept these as "rebuilds". If the 69 was built to 100% S code standards and all the numbers matched it would be hard to say it is fraud, now if the car had a 250 I6 in it with an S code Vin and suspension you could make a stronger cade. But unless it is defined how much of the car has to be there to start with to consider it a restoration or a rebody I think it is still a very grey area.
Now that issue put to rest many states do have laws on the books that make it having a VIN and Title without a car a crime. That would be this situation.
Here is the California Laws:
10802. Any person who knowingly alters, counterfeits, defaces,
destroys, disguises, falsifies, forges, obliterates, or removes
vehicle identification numbers, with the intent to misrepresent the
identity or prevent the identification of motor vehicles or motor
vehicle parts, for the purpose of sale, transfer, import, or export,
is guilty of a public offense and, upon conviction, shall be punished
by imprisonment in the state prison for 16 months, or two or three
years, or by a fine of not more than twenty-five thousand dollars
($25,000), or by both the fine and imprisonment, or by up to one year
in the county jail, or by a fine of not more than one thousand
dollars ($1,000), or by both the fine and imprisonment.