A BUSINESSMAN who led a "Walter Mitty" lifestyle has been convicted of defrauding a terminally ill friend out of almost half a million pounds.

Keith Cameron, 54, persuaded Jonathan Speirs, whom he had known since his schooldays, to hand over £476,864 which the dying man had saved for his wife and two daughters' future.

Cameron then used the cash to fund his "lavish" spending, including a £1.3 million mortgage, private education for his daughters and luxury holidays.

After hearing evidence for 13 days, a jury at Edinburgh Sheriff Court took 30 minutes to reach their verdict.

Sheriff Michael O'Gray QC told Cameron: "In almost four decades in these courts I doubt that I have seen conduct more dishonourable, or a meaner and more heartless crime of dishonesty."

Cameron pretended that his company, Chase Telecom Ltd, required money to fund a bid for obtaining a contract from another company, Telstra Ltd, to supply telecom services to companies.

Between October 1, 2009, and September 14, 2012, Cameron, of Russell Place in the Trinity area of Edinburgh, suggested that his company was trading well, that other investors had put in sums of around £1 million and that the Speirs would receive £2m or thereby within two years.

Mr Speirs, a lighting architect who died in 2012, put a total of £476,864 into a personal bank account held by Cameron. But the truth was there were no other investors, the company was not trading and had not been awarded any contracts.

The jury heard that a number of documents had been issued relating to dividends, the state of the company and a Board meeting, but they were all false. Cameron claimed they had been "mock-ups, just to try and give John an illustration of how things would work out".

Questioned by Fiscal Depute Gerard Drugan about his "lavish lifestyle", it was revealed that Cameron had a mortgage of £1.34m, had bought cars for his wife and a daughter, took holidays in Portugal in a luxury villa and regularly frequented top restaurants such as Martin Wishart.

He sent his two daughters to fee-paying Mary Erskine's school. One of them then went to the American Academy of Drama and the Arts in New York and had a student flat near the Empire State Building.

The court also heard that Cameron had borrowed money from his parents, from neighbours and from loan companies like Wonga.

Mr Drugan pointed out that he had been spending "astronomical amounts of money".

"You were living a Walter Mitty life, allowing your wife to spend as she wanted. You just squandered it on yourself. You just wanted to live the life you wanted for almost two years until John passed away and attention turned to his estate," Mr Drugan said.

"That's not true" said Cameron.

In his closing speech to the jury, Mr Drugan said Cameron was a "con artist" who had "betrayed the trust of his friend".

After the jury returned their unanimous guilty verdicts, Sheriff Michael O'Gray QC, told Cameron: "To, in effect, steal from a man tens of thousands of pounds he has worked all his life to amass is bad enough. To do so to someone you called friend is worse still.

"To do so in the knowledge that his only wish is for that money to provide for his wife and children in the years ahead hideous.

"But above all, to do so when you know full well that he is on the brink of death is wicked and cruel beyond the comprehension of any right thinking person. The word despicable is, in the circumstances, wholly inadequate."

Sheriff O'Grady remanded Cameron, who has been declared bankrupt, in custody for sentence next month. The Crown is also preparing an action under the Proceeds of Crime Act against him.

Following the jury's verdict, Mrs Speirs said: "I am so glad this man has been convicted because what he did to my husband, who was a very good man, is despicable and now my daughters and I are suffering from the financial consequences of Keith Cameron's actions."