California Department of Motor Vehicles [CA DMV]

I recently traveled to Manteca DMV Field Office in order to officially transfer title to my vehicle (just purchased). I had already submitted a police report and just needed to finalize the transferring of vehicle (stolen at time). I possessed all documents necessary as I had in hand title certificate (pink slip), current registration, prior registration, smog cert, police report info, receipt for purchase of vehicle. DMV discovered that person who stole vehicle had fraudulently obtained new registration in their name through 3rd party registration/title servicing company but that all the details were not yet updated in system and that it had occurred two days prior to my trip to DMV. The manager Sonja refused to take any action advising me that it is a civil issue or police matter. I disagreed and advised her that they are responsible party for transferring title and with my presenting all original evidence of ownership that they had a duty to act. She would not do anything and I was forced to leave without any aid from DMV. I am stuck in vicarious position while the party who stole vehicle is still in process of legally transferring ownership into their name without possessing any evidence of ownership other than illegally possessing the vehicle.