The Sydney Morning Herald reports the former member for Dobell's home on the NSW Central Coast was searched by Australian Federal Police officers on Wednesday.

An AFP spokesperson confirmed search warrants were executed on Wednesday as part of an ongoing investigation into a syndicate allegedly defrauding the Australian government.

The investigation involves the Australian Border Force, Department of Home Affairs and financial crime prevention agency AUSTRAC, as well as the AFP.

The raids occurred in NSW and Queensland.

"The investigation is ongoing and no further information is available at this time," the spokesperson said.

Thomson was suspended by the Labor party in 2012 while a sitting MP after he was accused of misusing members' funds while a Health Services Union official.

He was convicted of misusing funds in 2014.

The Federal Court later found he spent more than $300,000 of HSU funds to pay for sex workers and his election campaign.

Australian Associated Press