The Manufacturer's Statement of Origin is itself a requirement of the government and is only proof that the dealer or manufacturer owns the car before it is sold. There is no superiority of that document over certificate of title. The later simply replaces the former.
The relevant portions of the Illinois vehicle code can be found here:
Simply do a control-F search for 'certificate of origin'
I've looked into this theory before and it's bogus. The state does not retain ownership of a car. Nor does it care about registration and title if someone isn't driving the car. Local government may get pissy if the car is stored outdoors but once it goes into a building nobody is going to care. Furthermore even traded in cars are often lost in the system and original owners are contacted when the car ends up in an impound somewhere.
Simply put the fraud is elsewhere. It's in the requirement for registration and other rights turned into privileges through mass conditioning of the public. That's where the problem is. You own your car with or without state title. The title is for them to keep track of ownership wrt getting a cut on sales of vehicles.
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