Margaret Moran, who served as MP for Luton South from 1997 until the 2010 General Election, was found to have falsely claimed around £60,000 in parliamentary expenses between 2004 and 2008, of which she received £53,000.
Jurors at Southwark Crown Court in London were unable to return a guilty verdict after it was ruled that Moran was unfit to stand trial for mental health reasons.
Instead, in a trial of issue, the jury found that she had committed 15 counts of false accounting and six counts of using a false instrument over the claims for parliamentary expenses.
For more on this story visit the ITV News Anglia website.
More top news
A man from London who was the subject of cruel online taunts has had the last laugh when a group of celebrities threw a party for him in LA.
Taffazul Hoque is 38 but suffers from autism and epilepsy. He is in danger of having a seizure and is sought urgently by his family.
Rachel Key told ITV London she was really nervous about presenting the trophy, but as a lifelong fan, supremely honoured.