A third soldier had already pleaded guilty to one charge of assault after he was pictured standing on an Iraqi.
The abuse took place after British troops rounded up looters who were taking powdered milk from a humanitarian aid depot known as Camp Bread Basket, near the southern Iraqi city of Basra in May 2003.
Judge Advocate Michael Hunter said on Wednesday that the most senior of the three, Corporal Daniel Kenyon, 33, who was found guilty on two charges of failing to report that soldiers under his command had abused Iraqis, would face a jail sentence of up to two years.
Sentencing was postponed until Friday.
The seven British officers acting as a jury in the court martial found Lance Corporal Mark Cooley, 25, guilty of suspending an Iraqi from a forklift truck and of simulating a punch on an Iraqi.
Iraqis were outraged when the
The judge told him he faces up to two years in prison.
Lance Corporal Darren Larkin, 30, had pleaded guilty to assault after he was pictured standing on an Iraqi and faces a possible six-month prison sentence.
British Prime Minister Tony Blair has described photographs of the abuse taken by soldiers as "shocking and appalling".