Thomson to learn fate over fraud charges

Using union members' money to pay for prostitutes has ended up costing Craig Thomson dearly.

In the five years since fraud allegations were first aired, his reputation has been destroyed, his Labor party membership suspended and his seat in federal parliament taken by a Liberal.

On Tuesday he will learn if his crimes will also cost him his freedom.

Thomson, 49, faces up to five years in prison for misusing $24,538 while national secretary of the Health Services Union and a Labor MP.

Prosecutors have called for him to be jailed, saying his behaviour was arrogant in the extreme and contemptuous of union members.

But his lawyers say he should be spared jail because he has a major depressive illness and can never again enter public life.

Magistrate Charlie Rozencwajg said it was an "affront to common sense" that payments to escorts could ever be considered legitimate expenses when he found Thomson guilty of the dishonesty charges.

Lawyers have urged Mr Rozencwajg to consider Thomson's mental health and the fact his marriage was breaking down when the offending occurred.

"He sought comfort elsewhere," defence barrister Greg James QC said.

But prosecutors say the former union boss has not uttered a single word of remorse for his corrupt behaviour that has damaged the reputation of all unions.

Lesley Tanner SC said Thomson sought to falsely blame others and shielded himself behind parliamentary privilege.

She said anything less than a prison sentence would be manifestly inadequate.

The former Dobell MP was last month found guilty of 65 charges of obtaining property by deception and theft, after he spent more than $5500 on escorts and made cash withdrawals worth $6250 between 2002 and 2008.

Thomson has agreed to repay the misused funds.

Thomson will be sentenced in the Melbourne Magistrates Court on Tuesday.