Former IMF chief Dominique Strauss-Kahn was put under formal investigation on Monday for his involvement in a prostitution ring in France.

DSK, as he is popularly known, was once considered to be the frontrunner in France's presidential race. However, the last few months have dealt a blow to any such hopes he might have had.

Last year Kahn had resigned from his position as chief of the International Monetary Fund after he was accused of sexually assaulting a hotel maid in New York. The charges were later dropped.

Now, almost a year after that scandal comes this shocking revelation: his involvement in a prostitution ring and an organized gang. After almost eight hours of talking with the investigating judges, prosecutors preliminarily charged Strauss-Kahn with "aggravated pimping". According to the French law preliminary charges mean that there is a high chance that a crime was committed and more time is needed to further investigations. He's been released on a €100,000 bail.

Kahn has denied the allegations. He defends himself by saying that he did attend parties where he met women, but says he had no idea that they were prostitutes. His lawyer, Richard Malka, too declared that Strauss-Kahn did engage in "libertine" acts, but legally he did nothing wrong. He added that his client was being victimized in "a vast, invasive smear effort".

This prostitution probe, popularly called the "Carlton Affair" by the French press has others accused in it as well. Last year five men were arrested in the matter, including a hotel manager. Kahn too had been detained by the police for questioning and his involvement in the prostitution racket.

While being released on bail, Kahn was told that he is not permitted to have any contact with the others involved in this investigation. He is also forbidden from talking to the media to give his side of the story.

The once French-President hopeful may finally have to face charges, something he has managed to evade in the past. In 2003 a French writer Tristane Banon had filed a complaint alleging that Strauss-Kahn had raped her. Then too Kahn had denied the charge saying that he did try to "take her in my arms" and "kiss her on the mouth" but when she shouted "are you mad?" he let her go. The case could not be pursued due to insufficient evidence.