The jury of three enlisted men and three military officers found Sgt Lawrence Hutchins III guilty yesterday of unpremeditated murder.
His wife, Reyna Hutchins, sobbed as the verdict was read. He embraced and kissed her before he left the courtroom.
The jury also found him guilty of conspiracy and larceny because prosecutors say he stole the AK-47 and the shovel that were planted near the body during the April 26, 2006, incident. But he was found not guilty of falsifying an official statement.
"You don't have to convict Sgt Hutchins of anything," Attorney Christopher Oprison, who represented Hutchins, said during closing arguments.
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Hutchins, of Plymouth, Massachusetts, was allowed to go home but will return today for sentencing, when he will learn if the judge will credit him for the seven years he already served of an 11-year sentence.
Under military law, unpremeditated murder is a lesser charge than premeditated murder and means Hutchins can receive any sentence short of the death penalty.
Hutchins had his conviction overturned twice by military courts after rulings that there were errors in the handling of his case. Under the military justice system, the Navy was allowed to order his case to be retried.
The military's highest court, the Court of Appeals for the Armed Forces, ruled in 2013 that Navy interrogators in Iraq at the time violated his rights by holding him in solitary confinement for seven days without access to a lawyer.