In the court decision, Philo paid his wife and children, as well as Julio, hundreds of thousands of euros from the public payroll for little or no work.
Philo was sentenced to five years in prison, three of them on probation, as well as a fine of 375,000 euros ($ 423,000) and a ten-year ban on running.
His wife Penelope was sentenced to a suspended sentence of three years and a fine of 375,000 euros.
The Philos and their teammate also received more than one million euros ($ 1.13 million) in refunds from the French National Assembly.
A scandal ensues
Fillon was prime minister under President Nicolas Sarkozy between 2007 and 2012.
He then dismissed the allegations, saying his wife worked for 15 years as his deputy and took on several roles, including managing her schedule and representing him at cultural events. He added that his daughter and son had been employed in similar positions for 15 months and six months, respectively, which he said was not illegal but a “misjudgment”.