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This has been going on for some time and there is a group named the Motorcycle Task Force. You will see and hear about them being at motorcycle events around the country, supposidly checking for stolen motorcycles. They do find some from time to time but in most cases more are stolen than they recover.
Many believe that they are using this as a means to get to go to motorcycle events with the public paying. Many of them working undercover DUH Riding, partying etc.
When I was in Connecticut I filed charges against Bob Kenny of the State Police for consficating motorcycles. In one incident a motorcycle shop put a narrow fron end on a big twin, the anti theft number on the front end did not match the number on the frame. Note the front end was not stolen. In another incident the Harley davidson Dealer in Bridgeport took in some police motorcycles in trade when the department purchased new ones.
He used parts from two of the motorcycles to make one and had the state issue a new title and identification. This is a very common procedure.
Bob stopped the person who bought the motorcycle because he was a member of the Hells Angels and at that stop he consficated the motorcycle. Oh least I forget He also consficated on of the Easyriders puller bikes that was used at the rodeos.
These three motorcycle were later ordered returned to the owners. Though in some cases the people that owned the motorcycles did not have enough money to hire a lawyer. The cost of hiring an attorney was usually close to what the motorcycle eas worth and in some cases more. The owners claimed that had done nothing wrong but change some parts.
These motorcycles were later sold for pennies on the dollar to people in law enforcement a practice that I understand is still going on until this day.
We did do a article in Easyriders about him and his tactics and it slowed him down for awhile But the Task Force is now back at most motorcycle events.
Though stealing motorcycles is something that should be dealt with But the agency doing the consficating should not profit from it. it just keeps the greed factor out of it. What ever profits are made should go to schools, parks or the like.
If the attorney or anyone else wants more information on this please feel free to contact me.