the dealership. They will prosecute if any laws have been broken.
Based on my experience with auto auctions. Payment for the sale of the car is due in full within 7 days of auction date. They do not finance, and you can’t use a credit card. Payments are done by wire transfer. Title for the vehicle usually arrives up to two weeks after.
The only way the dealer doesn’t have the title is if there is a lien on the vehicle from a lending institution. But if there is sale of that vehicle and the lien holder has been paid the title would transfer to the new lien holder. My guess is he took the money for the vehicle but didn’t pay off his lender.