The 19-year-old was handed a four-month jail term, suspended for three years.
The Wigan MP said that Boris Johnson should have 'intervened without hesitation'.
A lawyer for one of the accused Israelis said he hoped "she has learned her lesson" after the sentencing.
An 18-year-old woman says a man broke into her room and pinned her to the bed.
The 19-year-old was found guilty of public mischief after she retracted her claim that she had been raped by up to 12 Israeli tourists in Ayia Napa in July.
She claimed she was attacked by up to 12 Israeli tourists in an Ayia Napa hotel on 17 July before making a retraction statement 10 days later.
The news of the lawyer's withdrawal from the case came as the 19-year-old woman's family reportedly set up a GoFundMe page to raise £15,000 towards her legal fees.
It is unclear how many of the suspects are implicated in the case.
An air stewardess also posed for a picture with AirEgypt hijacker Seif al-Din Mohamed Mostafa while he was wearing what was initially thought to be a suicide belt. Cabin crew member Naira Atef is seen smiling next to the 58-year-old, who took passengers and crew hostage during a tense five-hour stand-off on Tuesday. The picture emerged on Facebook after British Ben Innes, 26, also posted a picture of himself smiling next to Mostafa while being held captive on board the A320 jet.