Health insurer Your Health Plus launched in March 2005, offered private medical health insurance that was part savings and part medical cover.
It went into administration on 28 December 2006 and police have been investigating.
According to a report submitted to Companies House by the insolvency practitioner dealing with the case, there is a strong possibility that fraudulent activity occurred at Your Health Plus between June 2005 and July 2006.
The company was also in breach of Financial Services Authority rules on the management of clients' money and the structure of its insurance product. Customers' insurance cover was invalid.
With the complex product offered, it was never clear which insurer or bank was protecting the customer.
The moral of the story is make sure you understand the product and who the insurer is. Smoke and mirror policies may suit politicians, but not insurance.