Case Against Strauss-Kahn Collapsing Prosecution finds major holes in accuser's credibility By Rob Quinn, Newser Staff Posted Jun 30, 2011 10:14 PM CDT 15 comments Comments Former IMF leader Dominique Strauss-Kahn will appear in a Manhattan court Friday morning and the judge is expected to ease his bail conditions. (AP Photo/Richard Drew, Pool, File) (Newser) – The case against Dominique Strauss-Khan has fallen apart so dramatically that he could be freed from house arrest as soon as Friday, well-placed law enforcement officials tell the New York Times. The prosecution's investigators have found major issues with the credibility of the maid who accused the former IMF chief of assaulting her in his hotel suite in May, the sources say. Prosecutors are speaking to Strauss-Kahn's lawyers about dismissing the felony charges against him. Forensic evidence shows that Strauss-Kahn had a sexual encounter with the maid, but the sources say 32-year-old has repeatedly lied about the encounter and her own circumstances. Within a day of the encounter with Strauss-Kahn, the woman spoke to a man incarcerated on drug charges about the benefits of pursuing the case. Investigators discovered that the man was one of several individuals who had paid a total of $100,000 into her account over the last two years. "It is a mess, a mess on both sides," one source says.