A former Royal Protection Officer and his wife screamed death threats at a childhood friend for "betraying" them over a £3m spread betting and property scam, a court heard yesterday.

Paul Page, 38, who allegedly spent years funding a life of luxury with money conned from colleagues and friends, stormed round to see Fahim Baree after learning he had spoken to police, the court was told.

"He was angry. He considered his close friend had betrayed him," Douglas Day, QC, prosecuting, told London's Southwark Crown Court.

The barrister said the officer first pushed Mr Baree up against the wall of the house shouting: "I know what you did, basically you're dead", before telling the man's brother: "If he talks to my solicitor, we'll pretend like tonight's never happened."

Mr Day said Mr Page, who "smelt strongly of alcohol", then returned to his car as his wife, Laura, leaned out and yelled: "He's dead, tell him he's dead." Jurors have been told the former constable, who was based at Buckingham Palace, turned to crime after his sideline "Currency Club", a spread-betting operation he ran for fellow royal protection officers, spiralled into debt. He then began gambling heavily to recoup losses, the court was told.

Eventually, unable to pay his water rates or his wife's mail order catalogue bills, he set himself up as a property developer.

The barrister said although the operation was "bogus" from start to finish, his "veneer of credibility", coupled with promises of massive returns, saw the money flooding in once more.

Mr Day said that faced with all the signs of Mr Page's apparent success - large house, "expensive lifestyle", and a fleet of luxury cars - colleagues, as well as their relatives and friends, were convinced they could not lose.

Some handed over their savings, while one remortgaged his home and another handed over his pension pay-off. Mr Page denies five counts: two of fraudulent trading and one of intimidation.

He also denies threatening to take revenge and making a threat to kill a person between January 1, 2003, and March 30, 2007.

Laura Page, 42, pleaded not guilty to three counts.