Keith Cameron, 54, is facing jail after being found guilty at Edinburgh Sheriff Court of conducting a fraudulent scheme that involved him convincing a childhood friend who was terminally ill with cancer that his company, Chase Telecom Ltd, need money to honour a lucrative telecommunications contract.

Between 2009 and 2012, Cameron, who lives in Russell Place in Trinity area of the capital, repeatedly pretended to his lifelong friend Jonathan Speirs and his wife, Elizabeth, that his company was trading well and had been awarded the contract to secure an investment amounting to £476,864.

He also fabricated claims that other investors had also put in sums of £1m and £1.3m and that the Speirs would receive £2m within two years.

In fact, the company was not even trading and had not been awarded any contracts.

The court heard that Cameron also conned Mr Speirs into paying £1595 along with an administration fee of £269 to increase his shareholding in the company to 10 per cent.

Mr Speirs, who died of cancer in 2012, put a total of £476,864 into a personal bank account held by Cameron.

In evidence, Cameron said Mr Speirs had been a very successful businessman.

Mr Speirs, he claimed, had been “very keen” to invest money in Cameron’s company.

Asked by Defence advocate Mark Moir if Mr Spiers had been content to fund Cameron’s personal expenditure, he said: “He would not know the details of how the money was being spent, but he knew we needed the money to keep me and Chase Telecom going”.

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 had all been false.

Cameron admitted he had received a number of emails from Mrs Speirs after her husband’s death trying to get money back from him. In one exchenge, Cameron said the money would be aailable the next day.

“Why didn’t you just explain there was no money in the pot?” asked Mr Moir.

“With hindsight I should have done that”, he said.

When asked had he misled Mrs Speirs, Cameron said: “It was not intentional, but I accept she was misled”.

The court heard Cameron lived a “Walter Mitty life”, spending money on a lavish lifestyle he could not afford.

Fiscal Depute Gerard Drugan pointed out that he had been spending “astronomical amounts of money” in May 2012 when he had £110 in one bank account and 4p in another.

“You were living a Walter Mitty life, allowing your wife to spend as she wanted. You just squandered it on yourself”, he said.

“You just wanted to live the life you wanted for almost two years until John passed away and attention turned to his estate”.

“That’s not true” said Cameron.

In his closing speech to the jury, Mr Drugan said Cameron had “betrayed the trust of his friend”.

“This was the day of reckoning” he added. “He is a con artist” said the Fiscal, “whose life-style was funded by a friend dying of cancer”.

After the jury returned their unanimous guilty verdicts, Sheriff Michael O’Grady 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.”

Sheriff O’Grady remanded Cameron, who has been declared bankrupt, in custody for sentence next month.

The Crown and also preparing an action under the Proceeds of Crime Act against him.