How do I stop kids from calling me names?

I go to school with this kid who used to be my friend. About 5 months ago he decided to stop being my friend because he thought I was gay. At first he just yelled "your gay" at me and that never really bothered me because it had no effect on my life. I thought it would just wear off until he started to become more aggressive. At that time I had 2 really nice friends who treated me well. They were the only kids who I actually considered true friends. One of them started to hang out with this kid and I slowly began to notice he was becoming more like him. Eventually my other friend became like him to. So there were now 3 kids who were calling me gay. And this is only the beginning. I was walking to class one day and I walked passed him and he yelled out "Look out its jack, cover your *** holes." I know it sounds funny but when its being said to you its not. So the friends of these 3 kids began to become like them. And so I now have at least 10 kids calling me gay. They all hang out together in a group and hate on me. Now the kid who started this all has no reason to hate me, I never did anything to him. He runs away from every time I am near him because he thinks i am going to rape him. I am not gay, I have told him that but he never stops. I know if i can some how convince him that im not gay all of the others will stop. But i know i am going to have a hard time doing this because everything I say to him he uses against me. He is a spoilt brat, he is beyond rich and is extremely selfish. He once brought $80 dollars to school and used it all at the canteen, throwing away half of what he bought. He could have given all that money to charity or something like that. He is failing at school and he gets what ever he wants. He doesnt care about anyone and I know i am not the only kid at my school who he has tormented. I have started to notice more kids who are beginning to become like him. I just want him to stop, I dont care if he doesnt want to be my friend, as long as he stops. I want to punch him every time I see him, but I know if I do it will only fuel his hatred for me. And I know I couldnt punch him because I know in my heart i am better than that. The only thing I want for him is for him to realize the damage he has done and still doing, and to try to do better. I dont want to involve teachers or parents because I have enough troubles at home and I know if I tell the teacher I will just get called more names. Does anyone know how to stop this kid from calling me names?