Hello,
My company deals with this type of situation.
Have a read of our websites -
www.cma.uk.com and
www.car-crime.com.
My boss deals with innocent purchaser claims but he is on holiday until Tues 12th. Im sure he can give you some advice free, or will take over the claim on your behalf. I believe he charges about £120 plus VAT, but dont quote me on that.
My take on it is this - the title of the car was passed to the person you bought it from by the previous owner. The vendor then passed the title of the vehicle to you. The fact the Shogun then turns out to be stolen is a matter between the previous keeper and the trader.
Think of it this way - if the guy paid cash for the shogun, would he report that stolen?!!! No, he would just have a claim against the trader for selling him a stolen vehicle. He should have HPI'd it. His problem, not yours.
I could be wrong though!

Have a chat with my boss, Phillip Swift.
Good luck mate
Karen