YouTube/7NEWS

Embattled MP Craig Thomson faces a minimum of 5 years prison term after Magistrate Charlier Rozencwajg found him on Tuesday guilty of fraud and theft over his misuse of Health Services Union (HSU) credit cards.

The misuse was using HSU money to pay for sexual services with prostitutes, cash withdrawals, purchase of cigarettes and firewood for his former wife Christa and travel as well.

The magistrate gave his verdict in the Melbourne Magistrate's Court before a packed court room as the 49-year-old MP showed little emotion.

While Mr Thomson was also found guilty of using HSU funds even after he left the health union and became Labor MP for Dobell in NSW in 2007, some charges related to his former wife's travels were dismissed and charges of buying in-house porno movies at hotel rooms.

Mr Rozencwajg described Mr Thomson's use of HSU card to pay for escort services as then national secretary as an affront to common sense since it could never be considered legitimate expenses. Mr Thomson had denied using the card to pay for services of prostitutes, but a sex trade worker had confirmed the former HSU official was her client.

The court found the MP guilty of six charges of obtaining financial advantage by deception by paying $5,500 for escort services. He was also found guilty of 16 charges of theft for cash withdrawals totaling $6,250.

The magistrate adjourned the case for plea hearing on March 18 and ordered Mr Thomson to remain in Australia until. The prosecution unsuccessfully tried to have the MP surrender his passport.

HSU acting National Secretary Chris Brown, in a statement, said, "I promised the HSU members that we would seek to recover any monies stolen from the union and that is exactly what we intend to do."

As Mr Thomson was leaving the court, the family of HSU whistleblower Marco Bolani shouted to him "liar!"

The guilty verdict adds to the shame of the MP who was strip searched when he was arrested a year ago.

YouTube/7NEWS

RELATED STORIES