The Migrant Workers' Association is pleased the first arrest has been made over an immigration scam affecting some South Asian migrants.
In August, more than 140 Indian and Bangladeshi migrant workers paid between $20,000 and $40,000 for visas attached to non-existent jobs in New Zealand, and were found living in overcrowded homes in Auckland.
The adviser's business and home was raided on Friday, and they now face two charges of providing false information.
The charge carries a maximum penalty of seven years in prison.
Migrant Workers' Association immigration advocate Anu Kaloti said many of the men were now living in temporary accommodation provided by the state, and some have been helped into jobs.
"It's absolutely great news and a step in the right direction that perpetrators of these violations will finally be held to account and scammed migrant workers can look forward to some more justice."
Immigration NZ general manager of compliance Steve Watson said other people linked to the case are also being investigated.
"This arrest is just the start of the process and the investigation is ongoing but arresting someone and putting them before the court is the first part in holding them to account for what is a serious breach of the Immigration Act."
The Immigration Advisors Authority has refused to disclose how many licensed immigration advisors were being investigated in relation to the fraud.