Former IMF chief Dominique Strauss-Kahn was taken in for questioning on Tuesday by police investigating an alleged prostitution ring run out of the northern French city of Lille.
Mr Strauss-Kahn can be held for up to 48 hours and may then be placed under formal investigation on suspicion of benefiting from misappropriated company funds.
Investigators are trying to find out whether French executives used corporate expense accounts to fund sex parties with prostitutes.
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