Without admitting to anything. I know first hand that has been done
successfully. You're not supposed to have any engine or trans in the "parts
vehicle". People got away by placing said items in another container. In your
friend's situation, a second vehicle.

Some states will require that you license the vehicle as salvage or special
construction (such as a kit car). Of course, certain sneaky people realized
that certain government datafiles are deleted after they are inactive for a
given period of time. Stored the vehicle for the requisite time. Then
registered as if it had been here all along. The end.

If you don't get it, don't ask. I see nothing. I know nothing.