Former International Monetary Fund chief, Dominique Strauss-Kahn, has been placed under formal investigation for his alleged role in a prostitution ring in the French city of Lille, Reuters News Agency reports.
According to BBC News, Strauss-Kahn has admitted to attending parties where authorities believes prostitutes were provided to guests. He has also admitted to having sex with some of these women, but the former IMF chief denies knowing the ladies were prostitutes. He also claims to have never paid any of these women.
He was told he faces further questioning on charges of "complicity in aggravated and organized prostitution" and "misuse of company assets, The Guardian reports.
Last May, Strauss-Kahn was accused of sexually assaulting a hotel maid in New York. Consequently, he resigned from the IMF.
The charges against him were later dismissed, but the maid, 32, is now bringing civil charges against Strauss-Kahn. According to BBC News, that hearing is set to begin Wednesday. Dominique Strauss-Kahn continues to deny these allegations, and has filed a countersuit against the woman for slander.
After Monday's questioning, Strauss-Kahn was allowed to leave court, but only under certain conditions given by the Lille prosecutor's office..
He had to pay 100,00 euros ($133,300) in bail. He is also forbidden to talk with anyone involved in the case, including witnesses and the press.
Richard Malka, Strauss-Kahn's lawyer, said Monday that his client is innocent of all charges.
"He states with the strongest firmness to be guilty of none of these acts and in particular to not have had the least awareness that certain women he met could have been prostitutes," Malka told reporters.
The 62 year old, who was considered a top contender to be the next president of France, could face up to 20 years in prison.
Eight people, including, a Lille police officer have been placed under investigation in the case, which has been dubbed the "Carlton Affair" named after a hotel where these sex parties are alleged to have been held, BBC News reports.
The orgies at this hotel were allegedly organized by high-ranking officials in Lille who have close ties to Strauss-Kahn, The Guardian reports.
Last year, the Carlton Hotel manager, and four men were arrested in connection with the "Carlton Affair."
According to CNN, prostitution itself is not illegal, but profiting from "the prostitution of another person is against the law."