my guess, the "dealer" is now considering whether they want to commit a felony and save more hassle. As I see it, the only way the purchaser got their money back is not because the dealer thought it was the right thing to do, but because they wanted to avoid more trouble and escalation. In other words, if it weren't for the risk of the cops or notice of a civil lawsuit, the purchaser would be empty handed now.
If you saw the movie Superbad, when the "Mclovin" kid character is describing what he saw to the cop (Seth Rogen) and asks something like 'are you going to find these guys?" (and then the cop just murmurs something like, 'um, no, that never happens, but we have to fill out the form...' . I think anybody growing up in the US knows this story, who hasn't been ripped off?
Maybe the original owner had insurance, whatever rationalization or justification. But the rest of us should be pissed at this "dealer", if they do anything but start with the police, make a claim against the estate they purchased from, and then hang tight with the police to seek the opportunity to repurchase and re-title....