Margaret Moran, 57, was tried in her absence at Southwark Crown Court in London after it was ruled she was unfit to stand trial for mental health reasons.
The jury were unable to return a guilty verdict because of the former Labour MP's illness but found she had committed 15 counts of false accounting and six counts of forgery while in office.
Moran claimed nearly her entire annual allowance in one false expenses entry and faked invoices worth more than £20,000 of non-existent goods and services.
She submitted illegitimate claims worth a total of £60,000 between 2004 and 2008, of which she received £53,000.
Judge John Saunders is expected to sentence her at a future hearing.
Moran, who represented the constituency of Luton South near London from 1997 until 2010, may be subject to a supervision order, a hospital order or absolute discharge by which no further action is taken against her.
She will not receive a criminal conviction, the judge said.
Several lawmakers were jailed for expenses fraud after The Daily Telegraph newspaper published details of their claims.
The scandal forced a shake-up of the system of parliamentary allowances.