INDEPENDENT MP Craig Thomson has been bailed on fraud charges on condition he doesn't attempt to contact any person he allegedly sought sexual services from.

The bail condition was one of three read out to Mr Thomson by magistrate Susan McIntyre when he appeared at Wyong Court this afternoon on fraud charges.

Mr Thomson was formally charged with one count of misusing 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.

The three bail conditions were: that he notify police within 24 hours of any change of address, that he give 24 hours notice of any travel overseas or interstate with the exception of travel to Canberra and that he not contact "directly or indirectly", in person or through another party, any person whom he has allegedly engaged for sexual services.

Mr Thomson, who represented himself, nodded when he was asked if he understood the bail conditions.

The court was told further charges were expected to be laid.

No further details of the charges were revealed in court.

media_camera Member for Dobell Craig Thomson being arrested at his Tuggerah office. Picture: Waide Maguire

Thomson: I did nothing wrong

Mr Thomson made a statement outside Wyong Court and said he would appear in court in Melbourne next week to "vigorously defend" against the charges.

"Under legal advice, I've been asked not to give a speech," he said.

"I've done no wrongdoing".

"As you can understand, given what has occurred today, it is inappropriate for me or anyone else to comment."

Police: Thomson refused to surrender

Police said Mr Thomson was arrested in his electorate office this afternoon after he refused to surrender himself, police said.

But Thomson's lawyer disputes this, saying his client was only invited to travel to Victoria for an interview.

The federal independent MP was arrested at his electorate office in Tuggerah, on the NSW Central Coast, on Thursday under a warrant from the Victorian police.

The NSW fraud squad assisted Victorian police in his arrest.

Head of the fraud squad, Detective Superintendent Colin Dyson, has seen the Victorian warrant.

"I believe from reading the warrant that he was invited to travel to Victoria to surrender himself prior to Christmas," Det Supt Dyson told reporters outside Wyong Police Station.

media_camera Media gathered outside the electorate office of Craig Thomson. Picture: Waide Maguire

"He didn't do that, or refused, and the end result was the issue of that warrant."

But Mr Thomson's lawyer, Chris McArdle, said the police version of events was "completely untrue".

The request for his client to travel to Victoria was to attend an interview, not surrender to police, he said.

"If we had been given that invitation we would have done so and we wouldn't have needed this reality TV show that's going on," he said.

Mr McArdle said he and his client would travel to Melbourne on Wednesday and follow the court's instruction after that.

"This is something out of the Roman colosseum; this man's been thrown to the lions," he said.

"Five policemen arrested a man for minor misappropriation charges, which we deny. You don't need five policemen to do that. You only need five policemen if there's a risk of violence."

Det Supt Dyson said Mr Thomson was charged with one arrest warrant and served with paper relating to 149 charges.

He could not comment on the Victorian police probe, but added Mr Thomson “remains a person of interest” in a NSW police probe.

NSW Police’s Operation Carnarvon is investigating allegations of fraud committed against the Health Services Union.

"He remains a person of interest in the Strike Force Carnarvon inquiry," Det Supt Colin Dyson said.

Asked about Mr Thomson’s demeanour since his arrest, the policeman responded: "He has been co-operative. He has been very calm. He has accepted what has been said to him, he has not argued.”

media_camera Craig Thomson is arrested at his Tuggerah office. Picture: Waide Maguire

Craig Thomson's arrest

Mr Thomson was arrested at his Dobell electorate office about 1.15pm today by officers from the NSW State Crime Command’s Fraud and Cybercrime Squad.

Shocked shoppers watched as seven plainclothes officers attended Mr Thomson's electorate office in the Westfield Tuggerah shopping complex to serve the warrant for his arrest.

Four detectives went inside the office and emerged to escort Mr Thomson to a waiting unmarked police car.

Victorian police accompanied NSW colleagues to the building.

A coatless and tieless Mr Thomson, wearing a blue striped white shirt, said nothing as he walked 40m past shoppers to the car - with an officer each side of him and one behind him.

"Is he being arrested?" one shopper asked.

He sat in the middle of the back seat and was driven away.

Staff at the electorate office said they had no advance notice of the police raid and were upset Mr Thomson was not given the opportunity to report to the police station in a pre-arranged meeting.

In a statement, NSW Police said a man, 48, was arrested following investigations into allegations of fraud committed against the Health Services Union.

"He was taken to Wyong Police Station where he is expected to be charged by virtue of the arrest warrant with a fraud offence," police said.

"It is expected he will go before Wyong Local Court where a further 149 fraud charges are to be laid.

media_camera Craig Thomson is arrested at his Tuggerah office. Picture: Waide Maguire

"It is anticipated that Victorian detectives will apply for the man’s extradition to Victoria."

Lawyer slams 'the circus'

Mr Thomson’s lawyer Chris McArdle was being interviewed by Sky as his client was being charged.

He stressed that Mr Thomson would be pleading not guilty on all charges.

He noted that Mr Thomson’s forthcoming appearance at Wyong Local Court was a “formality” and that the politician would appear in court in Victoria next week. He also objected to use of the term “extradited” in relation to Mr Thomson’s journey to Victoria, saying it sounded like the accused was being forced.

Mr McArdle said the politician had been given no advance notice of the arrest and had briefly phoned the lawyer from the office as he was arrested, before going, without legal representation, with the police.

media_camera Craig Thomson is arrested at his Tuggerah office. Picture: Waide Maguire

He slammed the police for what he dubbed a “heavy-handed” approach to the arrest – and blasted the force for handing out press releases about the operation.

Mr McArdle called the proceedings a “circus” and queried why there was a need for five police – two from Victoria and one from NSW – to make the arrest.



“Two from Victoria, three from NSW – why did they not just have one of each?” he asked. “What were the others doing, handing out press releases?”

Taking aim at the fact a TV camera captured the arrest, Mr McArdle said: “It’s unbelievable that the rule of law has been supplanted by reality TV and a circus.”

Without naming individuals, he also took a swipe at “rather unintelligent politicians” – urging them to “observe the rule of law” around the case.

"I call upon the circus performers to honour the rule of law".

"This fellow is innocent and will maintain his innocence throughout."

"He's been taken completely by surprise."

"He's done nothing wrong."

Mr Thomson has strenuously denied allegations he misused union funds to pay for prostitutes, air travel, entertainment and cash withdrawals when he was national secretary of the Health Services Union (HSU) from 2002 to 2007.

Health Services Union responds news

The Health Services Union's national president Chris Brown said he had been expecting charges against Thomson since before Christmas.

"It’s something we have been working with Victoria Police with," he said.

"It was anticipated to happen prior to Christmas but it has taken a bit longer."

PM unaware of arrest

Prime Minister Julia Gillard was touring the flood damage in Bundaberg this afternoon and refused to comment on the arrest, saying it was a "matter for police".

"I have been focused here and what has been happening in these communities," she said.

"I know there has been some media reports."

Abbott: 'This reflects on the PM'



The Opposition is expected to use the arrest to step up its campaign against the "judgement" of the Prime Minister in the run up to the September 14 election.

Opposition Leader Tony Abbott couldn't prevent a smile when asked today if the police action meant he would cease comments on the former Labor MP's role in the HSU controversy.

"We have certainly respected or tried to respect the rule that you do not comment on the specifics of cases which are currently before the courts. And we will respect that rule," he told the National Press Club.

Shadow attorney general George Brandis and other senior colleagues had been scrupulous in observing this rule, he told the NPC.

"But the Thomson matter isn't just about what Craig Thomson may or may not have done, what he did or didn't do,'" said Mr Abbott.

"It's always been about the judgement of the Prime Minister."

"And you certainly can't expect that there won't be questions raised about prime ministerial judgement by the Coalition."

Ms Gillard said she did not want to engage in the "argy-bargy" of Mr Abbott's comments.

Federal government frontbencher Craig Emerson said Mr Thomson was entitled to the presumption of innocence.

- Errol Smith, Mal Farr, Stephen Drill and AAP



Originally published as Thomson's bail ban from ex-sex partners