Yeung had denied the charges of laundering $93 million (£55m) between January 2001 and December 2007, but has been found guilty and now faces a six-year stay in a Hong Kong jail.
A former hair stylist to Hong Kong's rich and famous, Yeung had told the court earlier in the week that he amassed his wealth through hairdressing, share trading, property purchases, gambling in the world's casino hub of Macau, and other investments.
Prosecutors had pointed to what they said were suspicious cheque payments made to Yeung by employees of Macau companies, including a junket operator, which earns commissions from casinos to attract cash-rich gamblers.
Delivering his verdict to a packed courtroom after a trial that lasted more than 50 days, District Court Judge Douglas Yau said Yeung had lied about how he made his money and exaggerated the amount of cash generated by his hair salon business and through gambling.
Yeung last month resigned from his position on the boards of the football club, Birmingham City plc and Birmingham International Holdings Limited (BIHL), the club's parent company.
It remains to be seen whether the 54-year-old will appeal against the length of the jail term.
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