Palau's former President, and now Senator, Tommy Remengesau, has been found guilty of 12 ethics code violations.
Several other counts were dismissed during the trial on charges that he failed to disclose some of his assets during his term as president.
The Special Prosecutor, Michael Copeland, says he may be fined up to 1.2 million US dollars.
Remengesau, who was President from 2001 until earlier this year, had said he had complied with the financial disclosure documents as best he could.
He says he may introduce legislation that will make the disclosure requirements clearer.
He says he would like to make the filing of financial disclosures very simple and clear so that the filers will not be prosecuted.
Remengesau says it's only a misdemeanor, but it's a criminal act in the sense that the filing was done incorrectly.