The DMV is definitely your best option -- perhaps your only option -- but don't be too surprised if they tell you that the car was stolen and that you DO NOT own it.
Never buy a car -- or anything else -- without proof of ownership. You can get badly burned that way.
I am really sorry to hear about this and I hope that you managed to find some rectification and recompense to your finances mate. Besides the DMV, I would also suggest going to the authorities and providing whatever proof you have, report it as a scam at the very least.
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