Thailand's Supreme Court has sentenced former prime minister Thaksin Shinawatra to two years in prison.
The nine judges ruled by five to four that Thaksin violated a conflict-of-interest law while in office when he got involved in his wife's purchase of land from a central bank fund.
The former prime minister said the case was politically motivated. He had said beforehand that he could not expect a fair trial from Thai courts.
He denied British media reports that he was seeking asylum in Britain.
A Thai prosecutor said he would urge Britain to extradite Thaksin now that the court had sentenced him to prison.
The ruling is the first in a spate of corruption charges against Thaksin and his political associates prepared by graft investigators appointed after a military coup in 2006.
It will do little to lower the political temperature in Thailand, where Thaksin still commands wide support outside the capital, and will be seen as a further blow to the government of Prime Minister Somchai Wongsawat, who is his brother-in-law.
The political crisis dates back to 2005 when the PAD launched street protests against Thaksin, alleging corruption and abuse of power.
The army removed Thaksin from power because of allegations of rampant corruption during his five years in power. Nearly $2bn of his family's assets have been frozen in Thai bank accounts.
An elected government came to power this year but the main party in the coalition, the People Power Party, is seen by opponents as a mere proxy for Thaksin.
The extra-parliamentary People's Alliance for Democracy has been waging a street campaign since May to force the government out and has occupied the prime minister's official compound since August.
Two people were killed and hundreds injured in clashes between PAD supporters and the police on 7 October.
