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Former Labor MP Craig Thomson has emphatically declared his innocence after being arrested and charged with 150 fraud offences.

New South Wales police arrested him on the Central Coast, at the request of Victorian detectives, investigating his alleged misuse of a union credit card.

The embattled MP emerged from Wyong Court as defiant as ever, ignoring legal advice not to comment.

"As a politician that probably goes a little against the grain particularly when every fibre of my being is screaming out to say how wrong this is," Mr Thomson said.

“All I’ll be able to say today is that we’ll be going to Melbourne next week, I’ll be vigorously denying these charges.”

The 48-year-old has been released on bail on the condition he not have any contact with prostitutes he's alleged to have engaged with.

Earlier, the former Labor MP was escorted by police through the same shopping centre where he has handed out thousands of how to vote cards.

Just a day into his bid for re-election as the independent member for Dobell, he was mocked by locals as he was taken away by Victorian Fraud Squad detectives.

“It’s great that you buy local Craig,” one heckler said.

Mr Thomson was arrested on a warrant for allegedly misappropriating Health Services Union funds and was then driven to Wyong Police Station to face another 149 fraud charges.

The MP's lawyer, Chris McArdle, claims to be shocked by the arrest.

“Why must we have five burly policeman to come and arrest someone over credit card charges? Why must that happen the theatre of it is the most distressing part of this matter?”


But police tell a different story.

“He’s accepted what was said to him, he hasn’t argued,” Detective Superintendent Colin Dyson said.

Police also say Thomson and his lawyer were asked by the Victoria Fraud Squad to travel to Melbourne to be interviewed.

“I believe from reading the warrant that he was invited to travel to Victoria to surrender himself prior to Christmas, he didn’t do that he refused,” Detective Superintendent Colin Dyson said.

But Thomson’s lawyer rejects those claims.

“He wasn’t invited to Victoria to be arrested, if he had been invited to Victoria to be arrested we would have gone," McArdle said.

"He wasn’t, that didn’t happen.”

Seven News has been told Victoria police agreed to a request from Thomson to spend quality time with his family at Christmas.

He'll appear before a Melbourne Magistrate on Wednesday.

His lawyer says he will plead not guilty.

“[We] will call upon his accusers to produce evidence which we believe will be found wanting,” Chris McArdle said.

Police confirmed Thompon remains at the centre of separate investigations by the New South Wales Fraud Squad into the activities of the NSW branch of the HSU.