Former French finance minister and IMF chief Dominique Strauss-Kahn is being questioned by police in northern France over suspected involvement in a prostitution ring.
He had asked to be interviewed in the case.
Known as DSK in France and once seen as a presidential frontrunner, Strauss-Kahn is expected to be questioned over sex parties in which he is thought to have taken part in France and the US.
French newspapers have dubbed the investigation ‘The Carlton Affair’ after the hotel in Lille where some of the meetings took place.
Two men with links to Strauss-Kahn are being investigated on charges of organising a prostitution ring and misuse of corporate funds.
“If these parties and these trips across the Atlantic were being financed by a major French group, for purposes related to prostitution, obviously that puts a lot of people in deep trouble because it is a misuse of corporate money,” said Christopher Mesnooh, a specialist in corporate law in France and America.
“If Mr Strauss-Kahn knew that this was being financed in part or in whole by corporate funds belonging to a large French group, then he would be considered to be, at a minimum, an accomplice to this misuse of corporate assets,” he added.
Dominique Strauss-Kahn’s fall from grace came last year when he resigned from the International Monetary Fund to face attempted rape charges in New York.
Prosecutors later dropped the case. The hotel maid who claimed assault is pursuing Strauss-Kahn in a civil action.