The magazine reports witnessing the "lovebirds cozy up at the Chateau Marmont in LA on March 14. While Crystal was hoping to keep their romance low-key, Jordan didn't care to hide his affections, kissing her shoulder and trying to hold her hand -- still adorned with her 6-carat engagement ring."
Jordan is Dr. Phil's younger of two sons. The older, Jay, is married to Playboy model Erica Dahm.
"They've been sneaking around because Crystal is supposed to be happily engaged to Hef," a source tells Life & Style of the alleged affair. "Going out in public with Jordan would tarnish Hef and Crystal's relationship image."
Hefner and Harris became engaged in December; their wedding is set for June 18.
Until recently, Jordan worked at record label Organica as Crystal's producer. "Jordan was let go from Organica for dating female clients under the label," a source says.
Michael Blakey, president of Organica, confirms to Life & Style that Jordan is finished working for the label. "To the best of my knowledge, Crystal is very much in love with Hef," Blakey adds.
A Playboy representative says Jordan and Crystal's relationship is strictly business.
See Holly Madison talk Hef and Crystal:
Charisma Carpenter Rachel Perry Kelly Monaco Michael Michele Elisabeth Röhm
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