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Rose Marks, 62 of Fort Lauderdale, Florida, allegedly told her customers she could predict the future and modify the past - as well as influence the Internal Revenue Service.
She has been convicted of duping clients out of $25 million.
When a jury found Marks guilty of 14 counts of fraud overnight, she was visibly shocked.
Clients, including a best-selling romance novelist, testified that Marks had exploited their emotional vulnerabilities, their spiritual beliefs and developed friendships in order to fleece them of their money.
Marks' lawyer said he would appeal the verdict on the basis of "government misconduct", claiming investigators did not record all of their conversations with the alleged victims.
Bond was denied and Marks was led directly to custody by officers at the federal court in West Palm Beach. She will be sentenced in December.
In a phone interview with the Sun Sentinel, novelist Jude Deveraux - who claims to have lost some $20 million to the psychic - said she was thankful for the verdict.
"I feel relieved that she's going to be taken out of this psychic business and can't hurt other people like she hurt me," Deveraux said.
" I just wanted justice and mainly to make her stop hurting other people and maybe to make her whole family stop this."
Deveraux said she had been exploited through her emotional vulnerabilities after an abusive marriage, several miscarriages and the death of her eight-year-old son.