A Leyton solicitor who laundered the £200,000 proceeds of a fine wine scam on wealthy and retired investors is facing jail.

Michael Wilson, 44, set up Global Wine Investments Ltd at lavish offices in the City of London to attract orders for cases of high-value wine.

But the company only spent a tenth of its income on stock, instead frittering the rest of the cash on wages, bonuses, luxuries and business costs.

Many of the victims never saw any wine at all and others were fobbed off with lower-quality bottles when they complained.

Wilson, of Perth Road, blamed his team of salesman and claimed he was negligent rather than dishonest.

He was convicted of possession of criminal property but the jury failed to reach a verdict on the fraud charge and the prosecution decided not to go for a retrial.

The Old Bailey heard Wilson’s firm operated from St Mary Axe in the City of London between April 2011 and September 2012.

One of the victims, David Scholey, said he contacted the firm in October 2011 after seeing a newspaper advert.

He decided to invest £19,600 on two cases of Chateau Lafite 2008 and another £17,000 the following month.

He became suspicious after asking to sell the original two cases and the London City Bond confirmed that they held no account in his name.

After repeatedly complaining, GWI ordered cases of a different wine worth only £25,245, resulting in a loss of £11,355.

Other victims never received any wine at all despite investing thousands of pounds.

Philip Tomkinson, who invested £42,500 but only received one case of wine worth £8,500, was so disgruntled he obtained a court winding up order.

Wilson, who was the sole signatory on the bank account and a director of GWI, blamed his team for failing to source the high-value wines promised.

He accepted it was his fault for not supervising them properly and said he was ashamed at how badly he had managed his company.

Wilson told jurors: “It wasn't intentional. It wasn't dishonest.”

Bank records showed GWI accumulated £631,261 in credits between July 2011 and September 2012 but only £64,016 was spent on wine and £100,000 on business costs.

Another £21,089 went on 'lifestyle payments', £93,000 was withdrawn in cash and £150,000 was paid to individuals including Wilson and his staff.

Wilson said: “I accept I was negligent. I accept I should have had more control over what the team was doing.

“I hired them to do a job. I paid them to do a job - they were supposed to be ordering the wines- I accept I was negligent but it wasn't my intention.”

He told jurors that one of his salesmen had previously been investigated for investment fraud.

He added: “I had a lot to lose, and you may ask yourselves why someone in my position would put themselves in this position - I accept that I and the team let the investors down.

“It's not a story I'm proud of. That's all I can say to you at the moment.”

Wilson was convicted of possession of criminal property and will be sentenced on 27 May. The count of fraud was left to remain on file.