A former federal MP Peter Shack has been convicted of stealing $100,000 from a family trust.

The Liberal member for the West Australian seat of Tangney from 1977 to 1993, had claimed during his trial that his mother-in-law agreed to lend him the money in 2004 for an investment.

He claimed his mother-in-law wanted to keep the loan a secret from her children to avoid jealousy.

However, on Friday, a jury in the Perth District Court found Shack guilty after deliberating for several hours.

He will be sentenced in April.

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