HSU wants $400,000 more from disgraced former MP and fraudster Craig Thomson

THE battles are not over for Craig Thomson with officials from the union he defrauded vowing to try and recover almost $400,000.

THE battles are not over for disgraced former MP Craig Thomson with officials from the union he defrauded vowing to try and recover almost $400,000 from him through the courts.

Thomson was found guilty in the Melbourne Magistrates Court yesterday of a string of fraud charges including using his Health Services Union (HSU) credit card to pay for prostitutes while he was national secretary.

Magistrate Charlie Rozencwajg said it was an “affront to common sense” that payments to escorts could ever be considered a legitimate expense.

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News_Image_File: Craig Thomson leaving the Magistrates Court, Melbourne.

He said Thomson, 49, passing off a $770 receipt for sex with a prostitute called Alina as a “dinner function” was a clear example of his dishonesty.

The one-time rising star of the Labor Party slumped in his chair as the magistrate found him guilty of six charges of obtaining financial advantage by deception for paying almost $6000 for escorts. He was also found guilty of 16 charges of theft for cash withdrawals totalling $6250 and for using the card to pay for cigarettes and travel expenses for his then wife Christa. Other charges including paying for pornographic movies in hotel rooms were dismissed.

Thomson had pleaded not guilty to 145 charges of theft and deception totalling $28,449 relating to the misuse of his union credit card between 2002 and 2008. He faces up to five years in jail.

“The union will now seek restitution to recover some or all of the funds he has stolen from the union,” Chris Brown, the HSU’s acting national secretary said. “These civil proceedings run to around $400,000 and include cash withdrawals, personal expenditure and more than $100,000 Thomson used in his election campaign.”

Three-times married Thomson was elected to the Central Coast seat of Dobell in 2007.

The allegations of credit card misuse against Thomson had been common knowledge before the Labor Party pre-selected him.

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By 2010, the claims against Thomson were even louder but his support had become critical in keeping the Julia Gillard-led minority government in power.

He moved to the cross benches as the criminal charges were levelled against him and used his time in Parliament to launch a tear-stained defence, claiming union official Marco Bolano had hatched a plot to “set me up with a bunch of hookers’’ .

Yesterday members of Mr Bolano’s family shouted “liar” as Thomson left the court on bail to await sentencing submissions on March 18.

News_Image_File: Craig Thomson leaving the Magistrates Court, Melbourne.In 2011 leading Labor figures defended Thomson with current Opposition Leader Bill Shorten, former prime minister Julia Gillard and transport spokesman Anthony Albanese all expressing full confidence in him.

But during the three week trial the court heard from more than 80 witnesses how Thomson had splashed around funds from a union representing some of the poorest workers in Australia.

The director of escort service Tiffany’s Girls said Thomson used his union credit card to pay $418 for the Red Turbo Spa Room at the Sydney brothel.

One escort, who gave her name as Misty, said Thomson was one of her regular clients when she worked for Escort Room Room Services escort agency in Surry Hills between 2007 and 2008.

He had introduced himself as Craig and offered her a glass of champagne before showering and having sex on the bed. After they were done, he would pay for more time so he could talk with her. He became a regular client.

“I have since seen him on TV and in the media deny that he used the services of prostitutes,” she said in her statement.

“He is lying and I am in no doubt that the Craig I performed a number of sexual services for over a period of time is Craig Thomson, the politician. “Thomson’s lawyers did not deny that he had used his union credit card to visit prostitutes but argued he had the authority to use it for personal expenditure. Because the expenses had been cleared and paid there was no dishonesty.

Yesterday Employment Minister Eric Abetz said Thomson should apologise to union members and for misleading parliament.

He also called for Mr Shorten to apologise on behalf of the Labor Party, “for its role in promoting and protecting Craig Thomson for so many years”.

Mr Shorten avoided answering questions about whether the judgment will tarnish Labor’s reputation.

The Coalition claims the verdict proves the need for a royal commission into union corruption.