Sanchez, 43, was found guilty of using false documents to purchase a property in Santa Cruz, Bolivia, in 2004.
It is understood that Sanchez, who retired from playing that year after a long career mostly spent in Portugal, acquired the deeds to a property using the signature of its former owner, who had died two years previously.
The complainant, Raul Paniagua, is the grandson of the deceased former property owner.
Paniagua told local media he will pursue a civil action to gain compensation.
Sanchez moved into management following his retirement, coaching the Bolivia national team between 2006 and 2009.