A former prostitute has confirmed she regularly provided sexual services to Craig Thomson at the time the former federal MP was accused of illegally using Health Services Union funds.
The woman met Mr Thomson while working under the name ''Misty'' for a Sydney escort agency in 2007, she says in a witness statement tendered to the Melbourne Magistrates Court and released on Tuesday.
The prostitute, who signed her statement with the pseudonym Mary Smith, said she realised Mr Thomson was accused of using union funds to pay for sexual services and other personal expenses only when she saw him deny the allegations on TV, long after she had left the sex industry.
''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,'' Ms Smith told police in her statement, signed in 2012.
She said she provided sexual services to Mr Thomson at hotels across Sydney in 2007.
On occasions Mr Thomson had champagne waiting for her in his room and would pay for extended sessions so they could talk after sex.
She said Mr Thomson had said he was a solicitor from the NSW central coast. She did not know he worked for the HSU, 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.
He is accused of using HSU credit cards and the Flight Centre account to accrue more than $28,000 in personal expenses, including sexual services, in-house adult films in hotel rooms, and flights and cigarettes for his then wife while he was national secretary from 2002 until 2007. He is also accused of withdrawing cash from union accounts for himself.
The prosecution alleges he continued using HSU funds for 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. His defence team will begin its closing submission to magistrate Charlie Rozencwajg on Wednesday.
In court on Tuesday, lead prosecutor Lesley Taylor, SC, said that on May 7, 2005, Mr Thomson paid $770 for sexual services with an escort worker, Alina, with his HSU-issued credit card while he stayed at Sydney's Westin Hotel. He later prepared a memorandum on HSU paper saying he had spent the money on a ''business expense''.