The case against former IMF chief and once likely leading French Presidential candidate Dominique Strauss-Kahn appears to be falling apart on Friday. Investigators working for the prosecution are now saying that they have uncovered serious holes in the credibility of the accuser in the case. According to high placed sources, prosecutors now do not believe much of the woman's story, although there is unambiguous evidence that a sexual encounter between Strauss-Kahn and the Sofitel housekeeper did occur. According to one law enforcement source cited by the New York Times, the accuser has repeatedly lied since accusing the former IMF chief of attacking her in his hotel room on May 14.

The alleged victim in this case, who was originally described as a hard-working, unassuming Guinean immigrant, appears to be a bit more mysterious than was originally reported. For example, there now appear to be possible links between her and people involved in criminal activities which include drug dealing and money laundering.

The woman's attorney, however, is still insisting that despite the new details which are emerging, it does not change the fact that she was attacked by Mr. Strauss-Kahn. "Nothing changes one very important fact, namely, that Dominique Strauss-Kahn violently sexually assaulted the victim inside of that hotel room at the Sofitel," Kenneth Thompson said.

According to reports, the housekeeper had a phone conversation with an incarcerated man within one day of making the accusations against Strauss-Kahn in which she discussed the potential benefits of pursuing charges against him. This conversation was recorded. Furthermore, the man that she was talking to had been arrested on charges of possessing 400 pounds of marijuana.

Even more mysterious, that man, among others, made multiple cash deposits totaling around $100,000 into the woman's bank account over the last two years. Even more bizarre, the deposits were made in 4 different states - Arizona, Georgia, New York, and Pennsylvania.

Another strange fact surrounding the accuser is that she was paying hundreds of dollars every month in phone charges to five companies. In another potentially damaging development, the housekeeper told investigators that her application for U.S. asylum included the mention of a previous rape, although there is no such account on her application. New reports suggest that this story of previously being raped may have been fabricated.

These developments come amid Dominique Strauss-Kahn's lawyers' comments about making the credibility of the accuser a major focus of the case against him. In a May 25 letter, the attorneys said that they had uncovered information which would "gravely undermine the credibility" of the accuser.

Given today's developments, Strauss-Kahn's house arrest has now been revoked, although his passport has not been returned to him. He is, however, allowed to travel freely throughout the United States. At this point, it looks like there is a significant chance that the charges will either be dropped or amended, but currently the prosecutors office is still investigating all of the facts, and as such, the accusations stand.