You should be able to establish your right to the vehicle by showing that you purchased the vehicle. Do you have any paperwork or a check to show that you paid the seller? Did the seller put your name on the back of the title to show that he sold the vehicle to you? Could you get the seller to work with you and explain the situation to the police? That would provide you with the basis for going to the police. I would also speak wth the DMV and explain that your "friend" obtained the title fraudulently. They may also be able to help you with this.