Former federal Labor MP Craig Thomson has been charged over his alleged involvement in a multi-million dollar migration fraud scheme.

Mr Thomson was arrested by federal police outside his Terrigal residence earlier today, and has been charged with multiple offences, including 19 counts of providing false documents and false or misleading information relating to non-citizens.

Police allege the 57-year-old was the primary facilitator of the racket, issuing more than 130 fraudulent visa applications across the hospitality and agricultural sectors over four years.

He is alleged to have gained over $2 million in proceeds of crime, and could face up to 10 years in jail if found guilty.

Mr Thomson is expected to face Gosford Local Court this afternoon.

The former member for Dobell was suspended from the Labor Party in 2012, and formally expelled from the NSW Labor Party in 2014.

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