Former Vice Interior Minister Yen Wan-ching was convicted by the Taipei District Court of receiving about NT$1.2 million in bribes, and embezzling NT$5 million from the DPP.
According to the verdict, Yen embezzled the NT$5 million, which was meant to be political donation to the party, while serving as the DPP's deputy secretary general in 2005.
During his stint as deputy interior minister, an office he took in 2006, he received the bribes in connection with a government project to build a cable car system in the suburban Taipei district of Peitou.
He resigned from his post in July 2006 immediately after being detained for taking kick-backs in the cable car project. He and six other officials and businessmen were later indicted.
A series of high-profile corruption scandals have gripped Taiwan in recent months.
There was no immediate word on whether he would appeal.
The court also found Yen guilty of defrauding the Taiwan Stock Exchange (TSE).
The court described Wu Nai-jen, then chairman the TSE, as an alleged accomplice in Yen's defraud case. The court demanded that the prosecution probe Wu's role.
Yen's conviction is the latest in a series of scandals hitting President Chen Shui-bian and the DPP administration.
Chen's son-in-law was convicted on insider trading charges last year, while first lady Wu Shu-chen and three former Chen aides have been charged with embezzling NT$14.8 million from the president's special account.
The aides are currently on trial, but court hearings against the wheelchair-bound Wu have been suspended pending improvement in her health.
