Craig Thomson arrives at the Magistrates Court on Thursday January 23.

Prosecutors allege handwriting links Craig Thomson to fraudulent credit card charges. Photo: Jason South

Prosecutors have cited two key examples of how Craig Thomson allegedly used union funds to pay for sexual services and looked at properties during a weekend trip with his then wife in closing their case against the former federal MP.

Lead prosecutor Lesley Taylor, SC, said two weekends in May 2005 highlighted how Mr Thomson used credit cards issued to him in his then role as Health Services Union national secretary to pay for personal expenses.

Ms Taylor began closing the prosecution's case against Mr Thomson in Melbourne Magistrates Court on Tuesday.

She took magistrate Charlie Rozencwajg through two of the 65 "events" in which the prosecution says Mr Thomson illegally dipped into union funds.

In the first example, she said that in the early hours of 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 during a work trip.

Mr Thomson later prepared a memorandum on HSU paper saying he had spent the money on a "business expense", Ms Taylor said. She said an analysis of the hand-written words "Internat Immobiliare" - the name of a company linked to The Boardroom brothel, which sent Alina - showed a strong resemblance to a sample of Mr Thomson's handwriting.

Telephone call records, credit card statements and frequent flyer statements all linked Mr Thomson to the Westin Hotel that weekend, the court heard.

In the other example, Ms Taylor said Mr Thomson used an HSU Flight Centre account to pay for weekend flights from Melbourne to Sydney for his then wife, Christa, later in May 2005 so the couple could use the trip to search for properties on the NSW central coast.

The court heard the couple dined at the Westin's restaurant that weekend and that Mr Thomson put the $374 bill on his hotel room, paid for by the HSU. But he later claimed he had used the $400 cash he withdrew from a union account before the trip for the dinner, "plus tip", the court heard.

Ms Taylor said examples similar to the two cases she highlighted were repeated "time and time and time again" during Mr Thomson's time as HSU secretary, from 2002 to 2007, and after he left the union to take up his role as Labor member for the NSW seat of Dobell.

Mr Thomson 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 during his term as national secretary. He is also accused of withdrawing cash from union accounts for himself.

Mr Thomson, 49, has pleaded not guilty to more than 140 charges of fraud and theft.

Ms Taylor said the issues of whether Mr Thomson was authorised to use union funds, and his subjective belief, were the keys to the case.

She said Mr Thomson was only permitted to use union funds for the advancement of the HSU and its members, and that it "stretches credulity" for him to have believed otherwise.

She said he, as a lawyer and experienced union official, would have known the HSU's policies and practices regarding expenses, and that his conduct in trying to mask transactions showed he knew he was doing the wrong thing.

"It is so self-evidently absurd that a written policy is necessary for intelligent, experienced union officials, particularly like Mr Thomson, to understand that he could not use a union-funded credit card for what he liked, particularly when he masked the transactions," she said.

Ms Taylor said if Mr Thomson was entitled to use HSU funds on himself, he would have not have employed subterfuge.

"He would not have masked transactions and would have said, 'It's part of my salary package, I'm allowed to do it'," she said.

Mr Thomson's defence team did not call any witnesses and will make its submission after the prosecution has finished.

One charge against Mr Thomson was dismissed on Tuesday because the alleged offence took place in Sydney, outside the jurisdiction of a Victorian court.

The offences Ms Taylor highlighted fell in the jurisdiction because the allegations of theft and obtaining property and financial advantage by deception were against the union, which was based in Victoria.

Mr Thomson held the federal NSW seat of Dobell as a Labor Party MP from 2007 until last year's election, when he lost his seat running as an independent.

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