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Report: Case Against Ex-IMF Leader Strauss-Kahn 'On The Verge Of Collapse'

NEW YORK (CBSNewYork/AP) -- Dominique Strauss-Kahn may soon be a free man.

Late reports Thursday indicated the former head of the International Monetary Fund may get his pricey bail and house arrest in his New York City sexual assault case arrangement eased considerably.

Lawyers on both sides have reportedly been meeting and are due in court Friday morning, reports CBS 2's Sean Hennessey.

Sources tell 1010 WINS authorities are concerned with the credibility of Strauss-Kahn's accuser.

Strauss-Kahn, 62, was arrested for sexually assaulting a housekeeper in his suite at the Sofitel, a posh Times Square hotel, on May 14.

1010 WINS' Juliet Papa Reports On The Latest Developments In The Strauss-Kahn Case


But from the beginning, the defense has questioned the accuser's answers to many questions.

"The forensic evidence we believe will not be consistent with a forcible encounter," attorney Benjamin Brafman said on May 15.

Now, prosecutors are beginning to believe the story may have been made up. Sources told the New York Times there are major holes in the woman's credibility and that the case may be "on the verge of collapse." The Times reports the native of Guinea lied on her asylum application and may have connections to drug dealing and money laundering.

The Times, citing a law enforcement official, says "since her initial allegation on May 14, the accuser has repeatedly lied."

Sources told the newspaper that while Strauss-Kahn was paraded before the cameras, the woman, who lives in an apartment in the Bronx, met with a prisoner friend at Rikers Island, and was recorded telling him the possible benefits of pursuing charges.

The Times reports of a recent deposit in her bank account, totaling $100,000.

The Manhattan District Attorney's office and a lawyer for Strauss-Kahn declined to comment.

The French economist and diplomat, once considered a candidate for his homeland's presidency, has been under armed guard in a $50,000-per-month Tribeca townhouse after posting a total of $6 million in cash bail and bond. He has denied allegations of trying to rape the hotel housekeeper when she went to clean his room.

The 32-year-old housekeeper's lawyer said that she remains too traumatized to return to work at the Sofitel. He rejected any suggestion that she might take a payoff and stop cooperating, insisting she'll take the witness stand if the case comes to trial.

The case also triggered outcry among hotel employees for better protections against sexual harassment.

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(TM and Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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