A former schoolmaster on trial accused of committing blackmail, burglary and theft against his "best friends" agreed in cross-examination at Truro Crown Court that in the past he had been an "inherently and deeply dishonest person".

Questioned by prosecutor Sean Brunton, 48-year-old Alan Reynolds admitted that many years ago he had stolen from pupils, friends and even his own tenant and brother.

"So stealing from pretty rich friends was easy?" Mr Brunton suggested. "I have not stolen from them," responded Reynolds, who explained that the earlier offences had occurred when he had a significant alcohol problem.

Reynolds, of Methleigh Parc, Porthleven, has denied burgling the home of Neville and Elodie Stewart, stealing money including Swiss francs and US dollars, clothing and books, and blackmail by threatening to make accusations against them to the Inland Revenue and Customs.

Mr Brunton described the letter he wrote to the couple as containing an exceedingly unpleasant threat and full of lies - "a thoroughly menacing thing to do."

Reynolds stressed that he had been only asking for his own money back (the £2,050 deposit he had paid for a skiing holiday with Mr and Mrs Stewart) and the return of his strimmer, strimmer cord and a pair of binnoculars.

Mr Brunton: "I understand your case is that Mr and Mrs Stewart have a lot to hide regarding their financial activities?" Reynolds: "Yes".

If that was the case, said Mr Brunton, why had they made allegations which led to the police going to their home and investigating their financial documents. His threat to send the letter had not stopped them.

Reynolds said he had not acted in a devious and dishonest way.

Some of Mr Neville's clothing had been found in his home because he had done washing for him and stored books and other items while his cottage was being renovated.

His finger prints had been found or could have been found in Mr Stewart's home and car and on his property as he had been around there virtually every day helping him.

Reynolds denied knowing that Mr Stewart had a safe in his bedroom or where he kept the key or that he had ever seen a valuable gold watch which allegedly had been stolen. "There was no watch and none was ever found," he stated.

He explained that photographs and albums had been found in his home as Mr Stewart had asked him to transfer them onto discs to be transferred to his computer.

Re-examined by his defence counsel, Michael Melville-Shreeve, Reynolds said he did not consider the letter requesting the money be repaid and strimmer returned within 48 hours as being unwarranted or menacing as it related to his own property.

The trial resumes today, Thursday when, following, following counsels' speeches, Judge Christopher Elwen will give his summing up and the jury of eight men and four women will retire to consider their verdicts.