Manchester Magistrates Court was told that in May this year, Morrison parked his Audi S3 on Bridgewater Street in the city using a blue badge, which allows people with limited mobility to park closer to their destination.
The permit was registered to someone who died last year.
Morrison pleaded guilty to one count of fraud, saying he had bought the badge from someone for 50 pounds ($63.09). He was fined 1,000 pounds plus costs and a victim surcharge.
A spokesperson for Manchester's City Council said the ruling showed the law was "applicable to everyone, with no exceptions".
Manchester-born Morrison was scouted for United's academy and signed a professional contract on his 17th birthday in 2010 but only played three times for the club, all in the League Cup.
The midfielder, who has also featured for West Ham United, Sheffield United and Derby County, last played for DC United.
