Labor was aware that an unregistered migration agent was offering migration advice since 1998 but chose to do nothing.
This is according to Robert Balzola, ex-Labor chief of staff for John Murphy MP, who claimed Lebanese community member Toufic Laba Sarkis was operating despite the party's knowledge of his conduct for nearly 20 years.
Mr Balzola said he brought the actions of Mr Sarkis to the attention of the Labor Party through his employer Mr Murphy and Laurie Ferguson MP at the time and since then.
"Consecutive Labor governments have done absolutely nothing to reign Sarkis whilst fully acknowledging his breach of the Migration Act during that time," he said.
"He has been giving migration assistance and making allegedly paid migration representations in broad daylight in the face of so-called competent authorities."
The Department of Immigration and Citizenship (DIAC) initiated court action against Mr Sarkis following accusations regarding his alleged actions.
Mr Sarkis appeared at Sydney Downing Centre Local Court on Tuesday (April 30) charged with providing immigration assistance while not a registered migration agent (RMA); charging for immigration assistance while not an RMA; and advertising that he gave immigration advice when not registered.
However, Mr Balzola said the DIAC is only now taking action because it risks losing the general election in September this year and the party is "burning the books".
"If Labor was likely to win the next election this announcement by DIAC would never have happened," he stated.
"Labor left Sarkis to run feral for about 15 years and now, at the very last minute they are dumping him. They know Liberal are likely to win the elections, so cynically they are hanging Sarkis out to dry to destroy the evidence before the Liberal minister takes hold."
The DIAC revealed that Mr Sarkis, who began working as a migration consultant before registration was a requirement, will appear in court again on June 11.
Migration Alliance applauds the crackdown on Mr Sarkis and encouraged the DIAC to exercise its full powers in finding any potential links with political identities.
Mr Balzola said the charges brought against Mr Sarkis are "too little and too late".
"Sarkis has been delivering Labor votes for years and feeding upon the misery of the Maronite community in the west (Harris Park/Parramatta in particular)," he added.
"Only when it is imminent they are going to lose the elections and when the writing is on the wall do they 'shoot their own generals'."