The sexual assault case against Dominique Strauss-Kahn, the former head of the International Monetary Fund, appeared in jeopardy after doubts were cast about the credibility of his accuser, dpa quoted The New York Times as reporting.
Senior prosecutors met Thursday with defence lawyers and they were discussing whether to dismiss the charges, the Times said late Thursday, citing two unnamed, well-placed law enforcement officials.
Prosecution investigators have discovered inconsistencies in what Strauss-Kahn's accuser has told them about herself, connections with drug dealers and unexplained money transfers in her bank account, the report said.
Strauss-Kahn has been indicted on charges of sexually assaulting the woman in early May when she went to clean his New York hotel room.
Prosecutors had previously emphasized the character of the accuser, 32, as a hard-working single mother who sought asylum upon immigrating from Guinea, but one of the sources was quoted by the Times as saying that she has repeatedly lied since making her initial accusation.
The accuser reportedly made a telephone call to a man in prison for possessing nearly 200 kilograms of marijuana within a day of the alleged assault, during which she discussed the advantages of legal action.
Prosecutors also found discrepancies between what she told them about her asylum application and the contents of the document as well as deposits into her account totalling 100,000 dollars over the past two years that she was unable to explain.
Lawyers for the defence were expected to seek to ease the harsh conditions of Strauss-Kahn's bail at a Friday court hearing. The session had been unplanned and was set Thursday. The next court hearing had not been scheduled until July 18.
Prosecutors planned to tell the judge Friday that they had problems with the case after the new information came to light, the Times said.
Strauss-Kahn pleaded not guilty to an assault May 14 at the Sofitel Hotel in midtown Manhattan. Lawyers indicated they were to argue that any sexual contact was consensual.
Forensic tests have shown evidence of a sexual encounter between the 62-year-old Frenchman, previously considered a strong contender for France's next presidential elections, and the woman.
The accused was released on 5 million dollars bail and is now living under 24-hour security surveillance in a luxury townhouse in lower Manhattan.