Prosecutors to drop charges against Strauss-Kahn (Reuters)

WASHINGTON (Reuters) – Prosecutors will drop sexual assault charges against ex-IMF chief Dominique Strauss-Kahn at his next court appearance in two weeks, or earlier, because of doubts about the credibility of the alleged victim, the New York Post said Tuesday.

The newspaper quoted an unnamed top investigator in the case who said the eventual dismissal of charges "a certainty."

"We all know this case is not sustainable," The New York Post quoted its source as saying.

"Her credibility is so bad now, we know we cannot sustain a case with her," the source told the newspaper, referring to the Guinean hotel maid who accused Strauss-Kahn of trying to rape her in a luxury hotel in Manhattan.

Strauss-Kahn, 62, was arrested on May 14 at New York's JFK airport and subsequently resigned as managing director of the International Monetary Fund.

But revelations that the accuser had lied about being raped in Guinea in a U.S. asylum request and changed details of her story about what she did after the incident in Strauss-Kahn's hotel suite have undermined her credibility and left prosecutors struggling to make a case.

A judge released Strauss-Kahn from house arrest and lifted strict bail conditions Friday, although serious charges including sexual assault and attempted rape remain in place against the man once seen a top French presidential contender.

"She is not to be believed in anything that comes out of her mouth -- which is a shame, because now we may never know what happened in that hotel room," said the source quoted by The New York Post.

The newspaper said its source was at the center of the investigation and spoke only on the condition of anonymity.

(Reporting by Anthony Boadle)

John Edwards charges appear likely Friday (AP)

RALEIGH, N.C. – Criminal charges are likely to be filed Friday against John Edwards, the culmination of a two-year federal investigation into money used to cover up his extramarital affair during the 2008 presidential election.

Edwards' attorney Greg Craig was traveling to meet Friday with prosecutors in North Carolina, an indication that the former presidential candidate is likely to charged, either in a grand jury indictment or in a negotiated charge to which he would plead guilty.

A person with knowledge of the investigation said Craig, a Washington lawyer who was President Barack Obama's first White House counsel, planned to be in his client's home state Friday, where prosecutors were prepared to file charges. The source insisted on anonymity in order to discuss the private negotiations.

Edwards has had North Carolina representation throughout the investigation, but Craig was brought onto the team earlier this year when the decision whether to charge him still rested with Justice Department officials in Washington.

Those officials have approved criminal charges; they decided that the hundreds of thousands of dollars that two Edwards donors gave to help keep his mistress, in hiding were contributions that should have been reported publicly by his campaign fund because they aided his bid for the Democratic White House nomination. Edwards' lawyers have argued that the funds were gifts from old friends intended to keep the affair a secret from his wife, Elizabeth, who died of cancer in December.

A plea to a felony charge involving campaign finances could strip Edwards of his law license and end any hope he could work as an attorney for the poor. And a trial would mean more sordid stories about his campaign affair and the child he fathered during it, further battering his reputation.

Even if he were to win the case, it appears the 2004 Democratic vice presidential nominee would do so by making a humiliating argument: that money used to keep his mistress and out-of-wedlock child in hiding was intended to shield the affair from his cancer-stricken wife — not to aid his candidacy, which is what prosecutors believe.

"Trial or not, John Edwards is the Charlie Sheen of American politics — great hair and no chance for rehabilitation," said Democratic consultant Jack Quinn.

Political sex scandals can either be just a career glitch (think Newt Gingrich, who recently announced a run for the presidency) or a career-ender (think Mark Foley, who recently declined a run for mayor of West Palm Beach, Fla.). Many Democrats believe Edwards falls into the latter category, as someone who faces little chance of revitalizing his image even if he emerges victorious from his legal case.

Edwards' attorneys have denounced the investigation as a waste of resources and contend he did not violate the law.

Edwards has said he hopes that once this case is behind him he can revive his legal career, specializing in helping the victims of poverty he championed on the campaign trail. However, a lawyer in North Carolina who pleads guilty or no contest to a criminal offense faces disciplinary action by the State Bar, ranging from a mild rebuke to a loss of license to practice.

The case against Edwards focused on the private money used to keep Edwards' mistress in hiding. Andrew Young, a former aide to Edwards, initially claimed paternity of mistress Rielle Hunter's child and traveled around the country keeping her in seclusion. Young has said he received hundreds of thousands of dollars of support from two wealthy Edwards donors.

Another dent in an Edwards' revival is moving ahead in civil court, where Young and Hunter are battling over a purported sex tape involving the former candidate. Edwards has been deposed as part of that lawsuit.

Gary Pearce, a Democratic strategist who helped get Edwards elected to the Senate, said he'd prefer to see Edwards take a plea deal and avoid a grueling trial that would rehash past sins.

"We've all had enough," said Pearce, who doesn't think Edwards will ever be able to return to politics.

Edwards, 57, has spent much of his time in seclusion since he first admitted the affair in 2008. He eventually admitted to fathering a child with Hunter. His wife died of cancer last year.

Several Democrats said Edwards, 57, could someday return to making a living but won't be able to strengthen his image to a prominent position.

Chris Lehane, a Democratic consultant who helped former President Bill Clinton through his cheating scandal, said Edwards' errors were particularly egregious even in an American society used to seeing political leaders stumble.

"The conduct went beyond what people expect and assume from politicians," Lehane said.

___

Pickler reported from Washington.

IMF chief faces growing pressure over sex charges (AFP)

NEW YORK (AFP) – IMF chief Dominique Strauss-Kahn, jailed in New York for alleged sexual assault, faced growing pressure Wednesday after a top US official cast doubt on his ability to lead the world lender.

"He's obviously not in the position to run the IMF," US Treasury Secretary Timothy Geithner said in his first public comments on the case, which could see Strauss-Kahn, once a favorite for France's presidency, spend years behind bars.

Strauss-Kahn, who has denied all charges and is spending his second night in New York City's notorious Rikers Island jail complex, faces a long prison sentence if convicted.

IMF spokesman William Murray said the Washington-based organization has not been in touch with Strauss-Kahn since his arrest in the first-class section of an Air France jet Saturday afternoon.

"We are aware of widespread speculation about the managing director?s status," he added.

Strauss-Kahn is accused of sexually assaulting a maid who entered his room at the posh Sofitel Hotel believing it was empty.

The 62-year-old allegedly emerged from the shower naked and tried to force himself on the woman, who was eventually able to fend off the attacks and run out of the room.

The 32-year-old woman has not been identified, and has not spoken publicly about the alleged incident. But her lawyer, Jeff Shapiro, told CNN that his client was suffering from "extraordinary" trauma.

On Monday, a judge refused to grant bail to the head of the International Monetary Fund, saying he posed a flight risk because he might try to escape to France. A new court hearing is due Friday.

A grand jury is due to convene to decide whether there is enough evidence in the accusations to proceed to trial. Such proceedings are secret, and the Manhattan District Attorney's office would not comment on progress.

Meanwhile, a man who says he is the maid's brother said she was in tears after the alleged assault.

"Something bad just happened. She was crying. She did not stop crying," said the man, whom AFP did not name to protect the identity of the maid.

"She was completely devastated. She was with the doctor and the police when she called me on Saturday afternoon," the man said, adding that his sister was a Muslim and did not know her alleged attacker.

He was also widely seen as the man who could unseat President Nicolas Sarkozy in 2012 elections.

Now he occupies a single cell on Rikers Island, along with thousands of other detainees, most of them too poor to afford their bail and a few, like Strauss-Kahn, who are considered a flight risk.

In France, Strauss-Kahn continues to enjoy some support, including from conspiracy theorists who claim he was set up. A poll said Wednesday that 57 percent of French people believe he is the "victim of a plot."

Prime Minister Francois Fillon, however, the most senior French official to publicly weigh in on the case, was quoted as saying there could be "no excuse" if the allegations were true, and that it would be "a very serious act."

Strauss-Kahn's lawyers have promised a "vigorous" defense.

During the bail hearing, the chief line of defense centered on assertions that Strauss-Kahn did not try to flee the country as alleged, and that he went out to lunch immediately after the time of the alleged crime.

This timeline, lawyers say, indicates that he had nothing to hide and was not in a panic, as police and prosecutors have suggested.

Another possible defense would be that the alleged sexual encounter was consensual, according to New York Post tabloid, which quoted a "source close to the defense" as saying "there may well have been consent."

In court, lawyer Ben Brafman said the evidence "will not be consistent with a forcible encounter," without elaborating, and another member of the defense team declined to comment on the Post report.

Prosecutors say they have physical evidence, including a doctor's exam made immediately after the incident indicating attempted rape.