Politician who hoped to sign historic peace accord with Palestinians is to be sentenced over claims he accepted cash bribes from US businessman

Former Israeli prime minister Ehud Olmert has been found guilty of accepting bribes in a retrial on corruption charges, the latest chapter in the downfall of a man who only years earlier hoped to lead the country to a historic peace agreement with the Palestinians.

Olmert’s lawyers said they would likely appeal against the ruling by the Jerusalem district court. He will be sentenced at a later court hearing.

Olmert has claimed he was on the brink of a historic agreement with the Palestinians when he was forced to resign in early 2009 amid corruption allegations. His departure cleared the way for hardliner Binyamin Netanyahu’s election, and subsequent peace efforts have foundered.

Olmert was acquitted in 2012 of a series of charges that included accepting cash-stuffed envelopes from US businessman Morris Talansky when Olmert was mayor of Jerusalem and a cabinet minister. Olmert was found to have received about $600,000 (£400,000) from Talansky during his term as mayor, and additional cash during his term as a cabinet minister, but a court did not find evidence the money had been used for unlawful personal reasons.

The acquittal on the most serious charges at the time was seen as a major victory for Olmert, who denied being corrupt. He was convicted only on a lesser charge of breach of trust for steering job appointments and contracts to clients of a business partner, and it raised hopes for his political comeback.

But Olmert’s former office manager and confidante Shula Zaken later became a state’s witness, offering diary entries and tape recordings of conversations with Olmert about illicitly receiving cash, leading to a retrial. In the recordings, Olmert is heard telling Zaken not to testify in the first trial so she would not incriminate him.

On Monday, a panel of judges at the Jerusalem district court ruled that Olmert had accepted $153,950 from Talansky when he was a cabinet minister, with the money kept hidden by an Olmert aide in a safe.

The judges concluded that Olmert gave Zaken part of that money in exchange for her loyalty and used the money for his own personal use without reporting it according to law and in exchange for favours to Talansky, calling it a “serious conflict of interest”. They convicted him on charges of fraud and breach of trust.

Olmert’s lawyer, Eyal Rozovsky, said Olmert’s legal team was “of course very disappointed” by the ruling and said his lawyers would review it and likely appeal.

The conviction was met with anger in Israel. “I want Ehud Olmert to apologise to the people of Israel,” said columnist and former Olmert confidant Dan Margalit on Israel Radio.

Separately, Olmert was convicted in a bribery trial in March 2014 and sentenced to six years in jail. He appealed and has been allowed to stay out of prison until a verdict is delivered.

At the time Olmert resigned as prime minister, Israel and the Palestinians had been engaged in more than a year of intense negotiations over the terms of Palestinian independence. The Palestinians seek all of the West Bank and east Jerusalem, in addition to the Gaza Strip, for an independent state. Israel occupied all three areas in the 1967 six-day war, though it withdrew from Gaza in 2005.

Since leaving office, Olmert has said he presented the Palestinians the most generous Israeli proposal in history, offering roughly 95% of the West Bank, along with a land swap covering the remaining 5% of territory. He also proposed international administration in east Jerusalem, home to the city’s most sensitive religious sites.

Palestinian officials have said that, while progress was made during the talks, Olmert’s assessment was overly optimistic.