A former prostitute has revealed she regularly provided sexual services to Craig Thomson at the time the former federal MP was accused of illegally using Health Services Union funds, and says his subsequent denials were lies.
The woman met Mr Thomson while working under the name ''Misty'' in 2007 for Sydney escort agency Escort Rooms Services, she said in a witness statement tendered to Melbourne Magistrates Court and issued on Tuesday.
The prostitute, who signed her statement under the pseudonym Mary Smith, said she only realised Mr Thomson was accused of using union funds to pay for sexual services and other personal expenses when she saw him deny the allegations on television, long after she had left the sex industry.
''It was only after seeing the appearance on TV last year about the allegations of him using prostitutes I realised the Craig I had been seeing as an escort is definitely Craig Thomson the politician,'' Ms Smith told police in her statement, signed in 2012.
''I was shocked to see this situation occur but I have since seen him on TV and in the media deny that he used the services of prostitutes.
''He is lying and I am in no doubt that the Craig I performed a number of sexual services for over a period of time is Craig Thomson the politician.
''The voice of Craig Thomson that I heard fits the image of the Craig I had dealings with.''
Ms Smith, who said she did not contact police voluntarily, claimed she provided sexual services to Mr Thomson at various hotels across Sydney in 2007.
He became a regular client and they even met a couple of times when she was not working for her agency, she said. She said the former MP had champagne waiting for her in his room on occasions, would pay for extended sessions so they could talk after sex and would escort her out of his hotel when she left.
Mr Thomson allegedly said he was a solicitor from the NSW central coast and that she did not know he worked for the HSU at the time, but had been shown a credit card receipt for $385, from one of their meetings, with his surname and the name Health Services Union.
Ms Smith's statement was released on the same day the prosecution began closing its case against Mr Thomson.
Mr Thomson is accused of using HSU credit cards and the Flight Centre account to accrue more than $28,000 in personal expenses, including in-house adult films in hotel rooms, flights and cigarettes for his then wife during his term as national secretary, and withdrawing cash from union accounts for himself.
The prosecution alleges he continued using HSU funds on personal expenses even after he left the union to become the Labor member for the NSW seat of Dobell.
Mr Thomson, 49, has pleaded not guilty to more than 140 charges of fraud and theft, previously claiming he was being set up by political rivals.
His defence team did not call witnesses on Tuesday and will begin its closing submissions on Wednesday.
The story Craig Thomson lied -- he had sex with me often, ex-prostitute says first appeared on The Sydney Morning Herald.