Luiz Inacio Lula da Silva, the former Brazilian President who played a key role in Rio de Janeiro's successful bid for the 2016 Olympic and Paralympic Games, has been sentenced to nine-and-a-half years in prison.
A judge found him of guilty of accepting bribes from an engineering firm in return for assistance in winning contracts with state oil company Petrobras.
It marks the latest step in a series of corruption convictions connected to the Operation Car Wash investigation.
The case marks the first of five charges against Lula.
He could remain free pending an appeal, however, and the trial process is expected to continue for the next six months.
The 71-year-old, who served as President between 2003 and 2011, denies wrongdoing and claims the trial is politically motivated.
He has expressed interest in running for the position again next year for the left-wing Workers Party (PT).
"For more than three years Lula has been subject to a politically motivated investigation," his lawyers said in a statement.
"No credible evidence of guilt has been produced, and overwhelming proof of his innocence blatantly ignored."
Lula presented to the International Olympic Committee (IOC) at the Session in Copenhagen in 2009, where the Brazilian city was awarded the Olympics in front of Madrid, Tokyo and Chicago.
His performance in the Danish capital was credited as a major reason for the success.
Lula's PT Presidential successor Dilma Rousseff was impeached from office for supposedly manipulating the budget last year.
Her replacement Michael Temer is also now facing corruption allegations.
It comes as Rio Olympic organisers continue to struggle to pay debts owed since the Games.
They are believed to owe at least BRL$87 million (£22 million/$28 million/€26 million) in outstanding payments to suppliers and third parties contracted for last year's event.
The Organising Committee will not be able to cease operating as a legal entity until all these debts are cleared and ongoing legal cases are resolved.
However, the IOC have made it clear at this week's Executive Board meeting that they will not be contributing any more money having already given Rio 2016 $1.53 billion (£1.19 billion/€1.34 billion).