An antiques dealer has gone on trial accused of handling stolen property, including an oil painting which was later valued at up to £60,000 by Sotheby's.

The painting of a sailing ship by artist Montagu Dawson was part of a large haul of pictures, jewellery, furniture and other antiques which was stolen from the Norfolk home of a respected dealer in October 1999.

A jury at Bradford Crown Court heard yesterday how Baildon antiques dealer David Shaw sold the painting for £12,500 to a gallery owner in Harrogate in January last year.

But in May police officers were contacted by its owner when he saw it had been put in a sale at Sotheby's.

Prosecutor John Topham explained that Shaw, 55, of Hoyle Court Road, Baildon, had already been spoken to by police after other items from the burglary had been included in an auction sale in Harrogate.

During that first interview Shaw admitted buying those items off second-hand dealer William Halford, but did not tell the police about other property, including the Dawson painting.

"The situation with that painting was that Mr Shaw disposed of that on January 3 and when the police spoke to him in April he made no mention whatever of that painting," said Mr Topham.

"The Crown would say that indicates guilty knowledge effectively.

"This was something he was seeking to conceal from the police.

''Indeed, it wasn't the only item he kept quiet about until the police discovered it."

When he was arrested and questioned about the painting in May, Shaw said he had panicked during the earlier interview because he could not afford to pay the £12,500 back to the Harrogate gallery owner.

He also admitted contacting Halford and asking him not to mention the painting to the police.

During his interviews Halford, 50, of Ada Street, Saltaire, explained that a man he knew as Paul came into the second-hand shop where he worked in Barkerend Road and told him that a relative had died leaving a house full of furniture and 'bits and pieces'.

He said he thought the man was 'sound' and after contacting Shaw he sold various items to him on behalf of Paul.

Shaw said after selling the Dawson painting to the gallery he gave £6,500 back to Halford.

He said he passed £5,000 to Paul and ended up with £1,500 himself.

Both men have pleaded not guilty to a charge of handling more than 30 stolen items including the Dawson painting and other works by artists such as RGD Alexander, ST Townsend and Charles Wigg.

The trial continues.