Sounds like a good way to go to jail, when Hertz sells you the car and then reports it as stolen to the police. Hertz does this very, very frequently to paying customers.
This would be Hertz selling cars. Even if they later mistakenly reported them as stolen the buyer should not be at risk of jail because the car would be registered to the buyer in the state's records.
If Hertz botches it so badly that the state paperwork cannot be correctly filed you will find that out shortly after buying the car and can get it corrected.
It shouldn't even get as far as the prosecutors. 5 mins of policework should get to the bottom of the matter.