Timothy Patrick Welch, of Prospect, was found guilty of stealing $50 cash from a lost property wallet belonging to Jarrod Tuttle.

Welch won an Australian Bravery Award commendation for his role in a siege in Willow Lane, Prospect Vale, in 1995.

He sustained shotgun injuries, but still helped a colleague and civilian to safety.

Welch's theft occurred on June 20, 2013, in the customer inquiries counter area of the Launceston Police Headquarters.

At the time, Welch, 54, was a public servant in the Department of Police and Emergency Management.

Welch contested the charge at a hearing in the Launceston Magistrates Court.

Magistrate Simon Brown found him guilty of stealing and recorded a conviction on February 28.

There was no further penalty because of Welch's outstanding record as a police officer.

Northern Commander Richard Cowling said that Welch submitted his notice of retirement to the department before his recent conviction.

"Mr Welch will be taking accrued leave until the date of his retirement," he said.

"The fact that this crime was detected on the day that it was committed speaks to the validity and strength of the property management processes that are in place within Tasmania Police.

"State service employees and police officers are subject to a code of conduct in relation to their employment.

"Processes for the handling of found property are stringent and have been in place for decades.

"The dishonest actions of one individual are not an indication of a systemic breakdown in procedures or policies."

Email ctang@examiner.com.au