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27 September 2010, 11:12 | Updated: 27 September 2010, 16:18
Police are investigating claims the MP for Portsmouth South has tried to take advantage of a vulnerable woman in the City..
The Sunday Times says Mike Hancock took the 36 year old out to dinner, gave her gifts and sent texts - but he says he was just offering 'help and support'.
The paper also claimed the married politician met the woman when she approached him with problems about noisy neighbours and inadequacies in her healthcare.
However, a spokesman for Mr Hancock said: "The Sunday Times story is exaggerated and taken completely out of context.
"Mike Hancock denies any allegations of any inappropriate behaviour and in no circumstances did any take place.
"All Mike Hancock did was offer help and support to this woman.
"Mike Hancock has not been contacted by Hampshire Police or been informed of any formal allegations or investigation. He will of course cooperate with the police if they ever contact him."
Mr Hancock told the newspaper "under no circumstances" had any sexual activity taken place between them but he had taken her out to dinner and bought her gifts "to cheer her up".
"It would be a very sad day indeed where MPs cannot act in a holistic and friendly way that helps their constituents," he added.
Detectives were said to be alerted by the unnamed woman's family support worker.
A Hampshire Police spokeswoman has confirmed to Heart an investigation was launched by officers after the complaint was received.
She said: "Information regarding the welfare of a female from the Portsmouth area was passed to us by a third party on August 5 this year.
"No offences were disclosed at the time but the information remained on file.
"On Friday September 24 we received contact from a female in relation to the matter and inquiries are now in hand."
A Lib Dem spokesman said: "The police are investigating. It's a private matter. The party is unable to comment."