To outsiders, it might appear to be a glamorous hidden world where highbrow art lovers meet some of the richest collectors in the world.

But the art market is actually a "hotbed" of corruption, a leading collector has said.

Kenny Schachter, a curator and commentator, said the art world was steeped in secretive dealings, with money laundering, insider tips and artists being "corrupted" as greed takes over.

Speaking at Hay Festival, sponsored by the Telegraph, Schachter gave an excoriating appraisal of the state of the art market, from the celebrity collectors attracted by money to allegations of immorality at the highest level.

He will next month take part in a BBC documentary entitled The Banker's Guide to Art, designed to take a less "reverential" view of the financial realities of art than ever before.