This is most definately a dodgy attempt to get around engineering/rego requirements, and as I said, totally illegal. What you do about it is entirely up to you, but the question is: do you have engineering certification for the conversion ?? (I suspect not). Also, do you have details of who did the conversion, etc.
Strictly speaking you should report this to your rego authorities, who will undoubtedly want to investigate the matter.....the engine could be stolen, for example. As I said, its up to you, but remember that your rego and insurance is invalid under these circumstances.
Edit: there are ways to determine the original engine number. Without getting too technical, the process of stamping the engine number into the block leaves 'damage' to the block material beyond what you can see with the naked eye. Using a 'black' light can sometimes reveal the original engine number info.