Former federal MP Craig Thomson embroiled in new fraud investigation

The Sydney home of former Labor MP Craig Thomson has been searched by police as part of an investigation into alleged fraud against the federal government.

Australian Federal Police officers executed a search warrant at Mr Thomson’s home in Balmain on Wednesday as a result of the investigation involving four federal agencies.

Craig Thompson, pictured in 2014, has been embroiled in a new fraud investigation.Credit:Pat Scala

“A joint agency investigation involving AFP, ABF, Home Affairs and AUSTRAC has resulted in the execution of search warrants in NSW and Queensland today,” a federal police spokesperson said on Wednesday when asked to confirm the activity at Mr Thomson’s address.

“This activity is part of an ongoing investigation into a syndicate allegedly defrauding the Australian government.”

The spokesperson declined to provide any further detail on the investigation.

There is no suggestion it is linked to the historical fraud that ended Mr Thomson’s political career.

A former federal MP for the seat of Dobell on the NSW Central Coast, Mr Thomson was convicted in 2014 for misuse of Health Services Union funds when he was the union’s national secretary between 2002 and 2007.

The funds were spent on fine dining with his wife and sex workers – personal expenses not permitted by the union. He avoided serving time in jail but was fined $25,000.

The scandal resulted in Mr Thomson’s suspension from the Labor Party in 2012 while he was a sitting MP.

He ran as an independent in the 2013 election but was unsuccessful, securing only 4 per cent of the vote.

When he was sentenced in 2014, Victorian County Court judge Carolyn Douglas said Mr Thomson had betrayed his union’s trust with “self-indulgent behaviour”.

“The gravity of the offending is the gross breach of trust involved. The seriousness is reflected in the continuing confidence, or arrogance, for having no regard for the trust placed in him,” she said.

Mr Thomson has recently worked in business and lives in Sydney with his wife and children.

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