I had a driver who worked for me who got caught the same way. In his case he was advised that his only recourse was a civil action against the guy he bought it from. Since that guy had no assets to speak of, that would have been a waste of money. He was paying the loan off for a car he didn't own, for the next two years.
The guy from whom he bought it swore that he had no idea it was stolen, and the police didn't even prosecute him.
Just wondering if the car was cloned having another logbook, wouldn't DVSA be able to check as they must have two separate registration for a same car with difference V5 serial number?