I would think so, It may be legal for them to do what they are doing but I don't think it's common. It looks like this guy was buying parts and pieces from all over and then he put them together to make two functioning cars. Hot rodders have been doing this for years so it can't be unusual to have a vehicle come to the DMV that is made from several other vehicles. What makes this unusual is that he built a vehicle that was not “officially” imported by the company of manufacture.
I would think this prosecutor has something against hot rodders or perhaps has union ties and doesn't like the fact that cars can be built without union labor.
Anyway, I just think there has to be a way to solve this without destroying perfectly good — usable automobiles.