The Church of Scientology was convicted of fraud by a French court yesterday but escaped being banned due to a temporary change in the law.

The French branch of the US-based organisation was fined €600,000. Four of its leaders received suspended prison sentences of up to two years and were fined between €5,000 and €30,000.

"This is an important and historic decision because it is the first time that Scientology has been found guilty of involvement in organised fraud," Olivier Morice, one of the lawyers for the civil parties to the case, told reporters.

The case was brought by two former members who said they were cajoled into spending €21,00 and €49,500 on personality tests, vitamin cures, sauna sessions and "purification packs".

Scientology has faced numerous setbacks in France, with members convicted of fraud in Lyon in 1997 and Marseille in 1999. In 2002, a court fined it for violating privacy laws and said it could be dissolved if involved in similar cases.

Scientology says it has gone to court in many countries to uphold the right to freedom of religion.