Is this some sort of fraud and can i sue?

Just bought my first car on craigslist. I bought 2001 honda accord that was listed at 3500 118k miles passed smog and no problems and i did everything wrong and got screwed. The guy who originaly sold me the car didnt mention he didnt have the pink nor was it under his name and the tags and registration were expired. He talked me into taking it for 2k and i could give him the rest when we changed ownership and renewed tags and registration the next day.In less than a day the check engine and TCS light came on We met today at cal ez auto registration waited for the original title holder and signed the transfer of ownership on the title. We couldnt get the tags reg and title due to a system malfunction they said they would have to get it from the dmv and i could pick it up tommorow with the title. The original owner works at a dealership which the title was under but kept insisting he was just there to change the title. I checked carfax and the last logged millage is 159k but is still a clean title the original seller doesnt have his name on anything but the smog check. My eyes are on the original title holder who works at a dealership. I only gave 2k still have the car and the title has been transferred under my name.

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