The owner of an Edinburgh building company and a former city council officer were both jailed for more than two years yesterday for stealing £331,000 from a housing association.

The owner of an Edinburgh building company and a former city council officer were both jailed for more than two years yesterday for stealing £331,000 from a housing association.

Steven Jardine, 35, son of former Scotland footballer Sandy Jardine, spent £90,000 entertaining Sean McGovern, the head of Calico Housing in Burnley, Lancashire.

In return McGovern, 35, transferred the money, around £47,000 a month, to Jardine's firm, Skyline Building and Roofing Services, for work they were supposed to have done on Calico's housing stock.

Preston Crown Court heard how McGovern was dazzled by the high life which Jardine laid on, taking his friend on holiday, golf and shooting trips, visits to Gleneagles and introducing him to celebrities and footballers.

But the work was never done and the money instead was used to prop up Jardine's ailing firm - and entertain his friend for the favour. The scam only came to light after tenants complained repairs were not being carried out.

McGovern, 35, and Jardine, 35, who both live in Edinburgh, admitted seven charges of obtaining a money transfer by deception.

Jardine, who has three young children, was jailed for two years and seven months, and McGovern for two years and nine months. Jardine was also disqualified as a director for six years.

Howard Bentham, QC, prosecuting, told the court the two men were friends, and there was also a commercial relationship when both worked in Scotland.

The fraud spanned six months between September 2004 and March 2005.

Mr Bentham said the accounting procedures of Calico were insufficiently robust. Work done should have been checked and records kept, but none of that happened.

When McGovern arrived he made two changes, that payment would be made as soon as bills came in and that Skyline would be the favoured contractor. Some £331,801 was allocated to Skyline but the work was not done.

Richard Marks, QC , for Jardine, said there had been a "blaze of publicity" about the defendants, and handed in copies of newspapers, which referred to Jardine's parentage. Jardine had brought the situation on himself and as a result of the case he had lost contracts.

Jardine was in extreme financial difficulty at the time, having exceeded a £250,000 overdraft. He succumbed to temptation and became involved in a dishonest scheme. Mr Marks said there had been a repayment of £410,000 - more than the money defrauded.

McGovern was not paid in cash, but in kind by holidays and lavish entertainment to the tune of £90,000 as a thank you.

Eric Elliott, QC, defending McGovern said: "What appears to have happened is that this defendant having known his co-accused for some time and having known his background and his celebrity status in the community, he became dazzled by what he perceived as a lifestyle he would have liked to have touched."

The offences had been committed out a sense of misguided loyalty to someone he regarded as a good friend.

Mr Elliott claimed the benefit of £90,000 to McGovern was a "ludicrous figure".

He had had a few golf trips, some shooting and a night at Gleneagles.

Of the money repaid, McGovern - whose wife is expecting their first child - had contributed £102,500 from the sale of his house and two loans taken out by his mother.