Charges put Labor campaign under arrest

Written By Unknown on Jumat, 01 Februari 2013 | 14.41

Former Prime Minister Kevin Rudd saidt he was 'highly surprised' if anyone knew the activities of the Police over the Thomson matter.

JULIA Gillard's high-stakes election strategy has been rocked by ex-Labor MP Craig Thomson's arrest on 149 fraud charges, including allegedly using union funds to pay for prostitutes.

Police arrested the MP yesterday over allegations he misappropriated hundreds of thousands of dollars of funds while he was Health Services Union national secretary.

The charges follow an investigation by Victorian fraud squad detectives in relation to claims Mr Thomson allegedly spent more than $7000 of union monies on escort services.

An angry Craig Thomson has left his Central Coast home this morning, narrowly missing a television cameraman as he drove quickly from his street.

Thomson emerged from his Bateau Bay home about 7.40am, but did not stop to talk to waiting media.

Instead, he drove quickly out of his garage and toward a cameraman, who had to jump to avoid being hit.

Embattled federal MP Craig Thomson has been granted bail after being charged with fraud.

Moments earlier, his wife Zoe Arnold approached media requesting she and the couple's two children not be photographer or filmed.

A shaken Mr Thomson emerged from the Wyong Court late yesterday after being granted bail, including one condition that he not contact "directly or indirectly" anyone who he allegedly engaged for sexual services.

The one-time Labor rising star - who was dumped by the ALP over alleged indiscretions while he was a union boss - will travel to Melbourne next week for a court hearing and vowed to "vigorously defend" the multiple charges.

"As I have said from the start, I have done no wrongdoing and that's what will be found in these matters," he said.

Chris McArdle, who is representing Thomson, yesterday night claimed prison guards stripped naked and searched his client.

Craig Thomson Leaves Wyong Court. Picture: Mark Scott

He said Thomson, 48, was strip searched by two prison guards after being arrested.

''These two goons put on rubber gloves, one stood in front of him, one stood behind him, and they said 'take off your shirt','' Mr McArdle told Network Ten.

''They examined his shirt to see if there were any molotov cocktails.

''He had to take all of his clothes off and stand naked in front of these two galoots who then took him into the court and sat each side of him.''

Mr McArdle described the treatment of his client as ''absolutely extraordinary intimidation of an innocent man''.

MP Craig Thomson denies any wrongdoing as he faces charges of 150 counts of fraud.

Victorian fraud squad detectives - who invited Mr Thomson to travel to Melbourne before Christmas - will allege that he used HSU funds to pay for escorts and personal items.

Police have worked closely with Fair Work Australia, which has also taken legal action against Mr Thomson.

The FWA court action - which is set down for a directions hearing in Melbourne this morning - may be deferred to allow the more serious criminal allegations to be heard by a court.

And in a further setback for Mr Thomson, NSW police confirmed that he remained a "person of interest" in relation to Strikeforce Carnarvon.

That investigation has already led to multiple charges being laid against former Labor powerbroker and union boss Michael Williamson.

Labor MPs reacted with horror upon hearing of the charges laid against their former colleague, who received more than $300,000 in legal assistance from the NSW ALP as he fought the allegations of fraud.

The MP is alleged to have used two union credit cards to make cash withdrawals and for unauthorised transactions, including more than $7000 spent on prostitutes.

News Limited understands police have engaged forensic experts to try and prove their case against the MP.

The Prime Minister declined to comment on the arrest of her former colleague, telling reporters in the flooded city of Bundaberg that it was a matter for the police.

Ms Gillard rejected suggestions she had advance knowledge of his arrest prompting her to make an election announcement.

"Of course not," she said.

Fellow Labor MP Kevin Rudd backed up the PM this morning on Sunrise.

''I would be highly surprised if anyone knew of the activities of the police and what they did with Craig Thomson yesterday,'' Mr Rudd said.

''Look the Prime Minister has named the date, that's her prerogative, she's the Prime Minister, that's what heads of government get to do,'' he said.

But Opposition leader Tony Abbott claimed the Thomson scandal reflected badly on Ms Gillard's political judgement. "It's always been about the judgement of the Prime Minister," Mr Abbott said, during a major speech to the National Press Club.

During a brief appearance in the Wyong Court, Mr Thomson was formally charged with one count of misuse of a credit card to the value of $330. He did not enter a plea but was remanded to appear in the Melbourne Magistrates Court on February 6.

He was given bail on three conditions including that he notify police within 24 hours of any change of address and that he give 24 hours notice of any travel overseas or interstate with the exception of travel to Canberra.

He was also told not to contact "directly or indirectly" any person he is alleged to have had any sexual contact with.

Mr Thomson nodded when he was asked if he understood the bail conditions.


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