So, about a year ago i became friends with this gay dude.  Found out a short time later that he had a crush on me.  I let him know that i wasn't interested but that we could remain friends.  He was a fun person to be around and i had a lot of free time then so we hung out a lot.  His family was also very nice to me and often had me over for dinner and treated me like family.  His father even helped me get a better job where he works.  After a few months we became really close friends and i confided in him about a lot of personal stuff and really extended a lot of trust to him however he didn't let the crush go and became secretly obsessed with me throughout this whole time.  

I ended up matching with this super cute girl on Tinder and we really seemed to be hitting it off.  So she gives me her number and we start texting.  Funny enough I come to find out she lives one street over from my friends house.  And my friend says he actually knows her, and that she jogs by his house all the time.  I try to meet up with her but her mother is dying of cancer and something always happens where she has to go be with her or help her when we were gonna meet up.  Of course i'm understanding of this i can't imagine what she must be going through etc.  She doesn't want to talk on the phone just keeps saying we'll meet up soon, this goes on for maybe a couple weeks, and things are starting to get fishy.  My friend tells me that he saw her at the store and started talking to her and brings me up.  She ends up hanging out with him a couple times when i'm conveniently busy or at work and then she would start talking about my friend with me and get super angry and stop talking to me for supposedly talking shit about him, even though i didn't.  But then he would talk to her and tell her what a wonderful person i was etc etc and she would give me another chance or whatever.  And i'm kind of getting fed up with this shit but at the same time I think that with her mother dying and all she's just having a rough time with it all.  So then one night i'm at my friends house and had a few drinks, so i'm staying the night and me and her are texting and she starts getting sexual.  But then it takes a twist when she starts to say that my friend, her and I should have a threesome.  Which i quickly shoot down.  So she says that I should just let him suck my dick and it would be real nice of me and that she'll make it worth my while etc.  So i'm weirded the fuck out now and know somethings up, So I confront my friend and he says he doesn't know he didn't tell her anything etc etc.  Still know somethings up, and I bring it up to one of his longtime friends and she tells me that he still has a crush on me and that he's catfishing me and that he's done this before.  So i immediately call him and confront him about it and threaten to cut him off cold unless he confesses the truth, and after 30 minutes of denying it, he finally confesses to making the whole thing up, he used some french instagram models pics and lied about her mother having cancer and everything.  

Turns out he's a crazy compulsive liar.  So i'm furious and feel like a chump and don't talk to him for a week, he keeps trying to apologize and tell me he understands if i never want to talk to him again and he never meant for it to get that far he was only trying to make me feel good about myself that such a cute girl would be interested in me (which i don't need and it's a crock of shit) and all this i know i messed up crap.  

Now his parents don't know he's gay and that any of this transpired and he tells me if i tell them why we're not friends anymore and out him that he's going to tell everyone what i told him (my brother is gay and my parents are super religious and would throw him out, and a bunch of other just personal things) And that if i embarrassed him he would do that to me and get me fired (His father is close friends with my boss and they talk as well).  So i tell him i'm not going to out him and end up staying kind of uneasy friends that drags on for a while cause i'm afraid that i'm going to lose my job if i cut him off, so that was 6 months ago but he's actually been better and his family has been very kind to me but I don't consider him a real friend, and i'm basically just pretending to be friends at this point and enjoying the perks (he has a pool) and knows a lot of people and cute girls i can get to easier.  He definitely has his issues but i think he might actually consider me a friend, I don't want him around long term but based on what i've seen how he's treated ex-friends i'm afraid of what he might do if i ditch him.  I should've just cut him off right after this happened but i didn't.  I thought i'd use him as revenge.  I'm passed that point i just don't care anymore but until i get a new job and other circumstances in life change I'm worried he might open his mouth, so i'm pretending be his friend to keep his mouth shut.

So, AITA for pretending to be his friend despite what he's done?  Even if he has (maybe) changed?