Auto Emissions Fraud?

We recently purchased a car from a private citizen who had purchased the car in April from her mechanic. We were aware that the engine had been replaced this past spring before the seller bought the car from her mechanic. We were presented with emissions test results that passed inspection and the vehicle was registered thus the assumption was that the vehicle passed the safety inspection as well. We have copies of the emissions test, which after speaking with the DNR realized was faked somehow. We are now facing over $1,000 in repairs as well as another $1,350 to replace the computers and sensors necessary to fix the engine to possibly pass. The State Police and the Department of Natural Resources is now involved. We don't know where to turn - things have just gone from bad to worse and I don't know how to pay for these repairs. We've been dealing with this for the past month and are now past our 30 day window to register and title the car - so now we are at risk of breaking the law. Currently we are in discussions to have the repairs made and a possible DNR emissions waiver but as this is our only car - we are in a very tight spot. To make matters worse we cannot legally sell the car now that we know there are problems without having the issues corrected and the car able to pass inspections.

I think we got hosed and it will be a very harsh lesson learned but if you have any advice - we would more than welcome your input!!

Thank you!