I know a couple of the guys from the cobra fiasco that occurred 8? years ago. I met them on a tour I took with them to the coast. This is briefly what happened. Different guys had slightly different experiences. None of them pleasant.
Using auto titles purchased from out of state, they registered their cars as '64 fords, paid registration fees, taxes on a declared value that would be expected for a '64 ford (not much) and then drove their cars like Cobras.
DMV fraud unit and the Attorneys General discovered the "inconsistancies" thru various means (posted photos, car shows, magazine articles about the cars, etc) and decided that fraud had taken place.
One saturday morning, 14 Cobra owners were notified by having law enforcement showing up at their homes with big guns, flack jackets and helmets. Not very comforting. The cars were impounded, all back taxes, late registration fees, penalties had to be paid before the car could be released. For a time, there was doubt as to whether the cars would be returned after the impoundment.
One of the violaters was a local county deputy sherrif, he spent 3 years in jail/prison because he should have known better.
I also registered my original IM using a title from out of state, as a 58 Speedster. I wanted to avoid paying a large registration fee and the use taxes that CA piles on to cars. I also wanted to get the Yellow/Black plates. After owning the car for about 3 years, I got a registered letter from CA DMV requesting my pink slip and the plates from my car, BECAUSE THEY knew it was fraudulantly registered and it was NOT a 58 Porsche Speedster. The letter further said that if I was caught driving the car it WOULD (not could) be impounded.
Fortunetely, I was nearly done with the SB100 process and I paid my late fees and taxes. I gave a copy of the "fraud letter" to John, the new owner of my very much missed black speedster. If he wants to share how serious it sounds.
By the way, this is an "amnesty year" to correct any ilegal or unlawful, fraudulant registrations in CA. You will still have to pay any fees due, but the AG said he will not prosecute.