The Peterborough director of football bet on his own player to finish top scorer and for the Posh to be promoted last season.
Fry, 73, was charged with the offences in December but underwent a hearing on Wednesday.
And they concluded that the former Birmingham City manager will be banned for four months from 1 February, but three of those have been suspended for a two-year period.
Peterborough finished eighth last season, five points adrift of the playoffs but their striker Jack Marriott did finish top scorer with 27 goals.
A rule change in August 2014 restricted anyone involved in football – from players and managers to club staff – from betting on games.
Fry has been at the club since 1996 when he became the chairman-manager at London Road after being sacked as Birmingham boss.
He left his role as boss in 2005 after the club were relegated to League Two and took up the position as director of football.
While Darragh MacAnthony succeed him as chairman in September 2006.
This season they sit sixth and will be hoping to achieve promotion via the playoffs.
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