A British tribunal struck off Phil Shiner, 67, in 2017 after finding him guilty of misconduct and dishonesty in connection with allegations against veterans of the Iraq War.

British soldiers served in the US-led invasion that began in 2003 and led to the fall of Iraqi dictator Saddam Hussein.

Shiner admitted at Southwark Crown Court that he made an application for up to pound200,000 ($255,000) of legal aid funding for his firm to represent clients, but failed to disclose that an agent acting on his behalf had made unsolicited approaches to potential clients in Iraq.

He also failed to disclose that he was paying referral fees, which is not allowed when applying for legal aid.

"This man drummed up business by paying fixers to find cases and profited from it by lying to the Legal Aid Board in what the judge called a thoroughly dishonest fashion," said Hilary Meredith-Beckham, a lawyer who has represented veterans involved in the accusations.

Judge Christopher Hehir on Tuesday handed Shiner a jail sentence suspended for two years for three counts of fraud.

He will only serve time in prison if he commits further offences during that period.

"You have already suffered professional and personal ruin and I do not consider it necessary to add to that by sending you straight to prison," said Hehir.

British troops involved in the conflict faced accusations including rape, torture and mock executions.

A subsequent pound24 million inquiry found the allegations of torture and murder were "wholly without foundation and entirely the product of deliberate lies, reckless speculation and ingrained hostility".

Former soldier Robert Campbell, who was wrongly accused of drowning an Iraqi teenager, said outside court that he was "pretty disgusted" Shiner was not sentenced to prison.

"The listing in court was a very benign documents case that didn't reflect the human element of what he has done in the slightest," he said.

"Of course he should have gone to jail. His poison has spread far beyond the Iraq war."