Case against IMF chief 'near collapse'

Attorneys for Dominique Strauss-Kahn will ask a court to reduce the conditions of his bail after New York City prosecutors raised serious concerns about the hotel chambermaid who accused the former International Monetary Fund managing director of sexual assault, according to a person familiar with the case.

Strauss-Kahn may be freed from house arrest Friday after attorneys for both sides requested an unexpected late-morning hearing in State Supreme Court. Prosecutors are expected to tell the court that they have found information that raises questions about the chambermaid’s credibility, the person said.



The New York Times reported Thursday night that the prosecution’s case against Strauss-Kahn was breaking down. A spokeswoman for Benjamin Brafman, an attorney for Strauss-Kahn, declined to comment. A spokesman for the New York City district attorney said there would be no comment before Friday’s hearing.

Under relaxed bail conditions agreed to by the prosecution, Strauss-Kahn is expected to be allowed to travel freely in the United States but not abroad. He has been confined to an apartment in Manhattan while awaiting trial. The arrangement has cost him $250,000 per month.

Prosecutors, who had expressed confidence in their case and said they had physical evidence proving that Strauss-Kahn had sexual contact with the woman, now have serious doubts about what the chambermaid told them, according to the person familiar with the matter, who requested anonymity to speak freely about the confidential matter.

Strauss-Kahn, who led the IMF through the global financial crisis and was a potential candidate for president in France, has always maintained his innocence.

Strauss-Kahn’s arrest in May and subsequent resignation have had a global impact. His alleged encounter with the maid, a 32-year-old immigrant from Guinea, upended French politics, threw global economic negotiations into disarray and seemed to cause one of history’s more spectacular political downfalls.

After Friday’s hearing, both the prosecution and defense will consider their next steps.

A separate law enforcement official who is familiar with the case but not authorized to speak about it publicly told the Associated Press that the issue was not necessarily about the rape accusation itself but about questions surrounding the alleged victim’s background that could damage her credibility on the witness stand. The official refused to elaborate.

Prosecutors are questioning the woman’s asylum application with U.S. immigration authorities as well as her possible connections to a convicted drug dealer, the Times said.

The chambermaid had a telephone discussion with a convicted drug dealer within a day of the alleged assault and discussed the possible benefits of filing charges against Strauss-Kahn, according to the Times.

Prosecutors have found that the woman received $100,000 in cash payments in her bank accounts in recent years from the drug dealer and others. They also found she maintained multiple bank accounts.

Kenneth Thompson, an attorney for the alleged victim, could not be reached for comment late Thursday.

In a May 25 letter to New York City District Attorney Cyrus Vance, Strauss-Kahn’s attorneys complained about information, detrimental to their client, being leaked to the media.

“Were we intent on improperly feeding the media frenzy, we could now release substantial information that in our view would seriously undermine the quality of this prosecution and also gravely undermine the credibility of the complainant in this case,” they wrote.

Prosecutors may still try to charge Strauss-Kahn with a misdemeanor, but his attorneys are expected to oppose that, the person familiar with the case said.

At the IMF, staff were stunned by the charges, at once absorbing the notion that an accused sex offender had occupied the agency’s executive suite and defending the IMF against allegations that it was an uncomfortable place for female employees.
The IMF board also faced questions over whether it erred in deciding to keep Strauss-Kahn in office two years ago after he admitted to an affair with a staff member.

His resignation from the IMF touched off a global competition to name a successor as candidates crisscrossed the globe lobbying for support.

As Strauss-Kahn sat in a New York prison and prosecutors spoke authoritatively about the strength of their case, heads of state and finance ministers debated whether the job should be given to another European or someone from a developing nation.

French Finance Minister Christine Lagarde was appointed this week and will start work Tuesday.

The case roiled French politics as well. Strauss-Kahn was considered a strong candidate for the French presidency and was expected to pursue the nomination of the Socialist Party. His supporters have said Strauss-Kahn was being set up.

He and his wife, Anne Sinclair, were among a European elite whose connections included some of the world’s leading philosophers, writers and artists.

 

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A BRITISH hiker has found the bodies of six mountaineers who died in the French Alps.

The hiker found the bodies near the Neige Cordier summit at an altitude of 8,850 feet.

"The victims were climbing roped together in two groups. It looks like there was a slide of snow and stones," the local mayor, Xavier Cret, said.

The climbers appear to have died while making an ascent in good weather on Saturday, according to police.

The group was apparently headed for a point at 11,857 feet in the Massif des Ecrins.

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Suspected Irish serial killer flees to France

Sex beast Larry Murphy – linked with the disappearance of New Yorker Annie McCarrick 18 years ago – has fled Ireland for a second time.

The 46-year-old was caught on camera by the Irish News of the World as he escaped to France last Thursday.

He had been forced to return to Ireland from Spain in May after losing his passport but told police he would leave the country again as soon as the paperwork was completed.

The convicted rapist had spent recent weeks in a number of hotels and guesthouses after complaining that media attention made it impossible for him to go out in public.

He finally received his new passport on Wednesday and was driven to the Wexford port 24 hours later in a car with blacked-out windows.

Reporters and photographers from the News of the World followed Murphy as he left for France on board a ferry from Rosslare last Thursday.

They monitored Murphy’s movements on board, followed him to a cheap hotel in Cherbourg and onwards to Paris.

He has lived between Holland and Spain since his release from prison last year.

Murphy was freed last August after serving just 10 years of an 18 year prison sentence for the abduction and rape of a woman in County Carlow.

He has consistently refused to co-operate with police enquiries into the disappearance and murder of a number of young women in the Leinster area in the 1990s.

Murphy, from the Wicklow town of Baltinglass, is the main suspect in the disappearance of American student McCarrick, last seen leaving a pub in the Dublin mountains all of 18 years ago.

His movements are now being monitored by police across Europe.

 

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France bans UK garden firm's seeds in E.coli scare

At least two people suffering from E.coli in the French city of Bordeaux have the strain that caused scores of deaths in Germany, French authorities said, and they halted sales of vegetable seeds from a British gardening firm.

The firm, Thompson & Morgan, based in the eastern British town of Ipswich, said on Saturday it did not believe its seeds were the cause of the outbreak. A British member of the European parliament said the French authorities should be careful not to damage businesses by hastily assigning blame.

French authorities say six of the people hospitalised in Bordeaux ate sprouted salad vegetables grown from seeds by parents for a June 8 fair at a leisure centre in the Bordeaux suburb of Begles.

The suburb's mayor, Noel Mamere, told Reuters the seeds had been bought from a local shop, whose entire stock had since been seized. The French commerce ministry said the seeds at the shop were supplied by Thompson & Morgan.

While awaiting the results of analyses, the government had instructed the consumer authority "to ask sellers of fenugreek, mustard and rocket seeds coming from supplier Thompson & Morgan to suspend the sale of these products without delay," it said.

"The link between the symptoms and consumption of these seeds has so far not been definitively established," the ministry added in a statement issued on Friday.

The company said it had sold hundreds of thousands of packets of sprouting seeds to home gardeners in Britain and Europe without any problems.

"We note that the French outbreak seems to be localised to a specific event, which would indicate to us that something local in the Bordeaux area, or the way the product has been handled and grown, is responsible for the incident rather than our seeds," it said in a statement.

 

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BRITISH officials warned against eating uncooked sprouts after French authorities linked seeds to an E coli outbreak.

France halted the sale of fenugreek, mustard and arugula sprout seeds from British mail order seed and plant company Thompson and Morgan after eight people were hospitalised following an E coli outbreak.

French investigators found that two of them were sickened after consuming sprouts from the three seed types in the southwestern town of Begles, a suburb of Bordeaux.

Some of those affected were infected by the same strain of E coli that has killed 44 people - all but one in Germany - and sickened more than 3700 in recent weeks.

In a statement, Thompson and Morgan said the link being made by French officials was unsubstantiated, adding that it believed that "something local in the Bordeaux area, or the way the product has been handled and grown, is responsible for the incident rather than our seeds".



A spokesman for Britain's Food Safety Agency said officials "don't have definitive evidence that the company is the source of the contamination", that no food poisoning cases have been reported in the UK, and that investigations are ongoing. But in what the agency described as a precautionary move, it released a statement warning that "sprouted seeds should only be eaten if they have been cooked thoroughly until steaming hot throughout".

The official, who spoke on condition of anonymity, in line with department policy, noted that European health authorities have misattributed the source of E coli outbreaks in the past. Spanish cucumbers, for example, were wrongly blamed for the illnesses in Germany.

Thompson and Morgan said French officials are still testing the seeds and investigating how they were grown. In the meantime, the company said it has submitted samples of its seeds to British health authorities for investigation.

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British pilot and his wife died when their light aircraft crashed near the French Riviera

A British pilot and his wife died when their light aircraft crashed near the French Riviera. James and Jacqueline Balmer, from Cirencester, Gloucestershire, set off from Italy and were making their way towards Troyes, 100 miles south-east of Paris.

The wreckage of their aircraft was discovered yesterday on Mont Agel, between the port of Menton and the principality of Monaco. The bodies of Mr Balmer, 68, and his wife, 54, were taken to the nearby city of Nice

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7 Children Infected With E. Coli in France

French health authorities say seven children have been hospitalized with E. coli infections in northern France, five of them after eating defrosted beef burgers.

The officials said Thursday the strain of E. coli that infected the children is not linked to a deadly outbreak of bacteria in Germany that has killed at least 39 people and infected more than 3,300 others in recent weeks.

The seven children, the youngest of them 20 months old, come from towns in France's Pas de Calais region.  They were hospitalized on Wednesday and Thursday with E. coli symptoms such as bloody diarrhea.

French officials say five of the children had eaten frozen ground beef patties sold by German supermarket chain Lidl and produced by French company SEB.  Lidl has removed the "Steak Country" product from all of its stores in France on orders of French health authorities.

SEB says the recall affects about 10 tons of meat that may come from several EU nations, including Belgium, France, Germany, Italy and the Netherlands.

SEB chief executive Guy Lamorlette told the French news agency that the company is awaiting test results to determine if the frozen beef burgers were responsible for the French E. coli cases.  He says the products were checked for safety before being delivered to stores.

German officials say the more dangerous strain of E. coli affecting northern Germany has been traced to sprouts from a local farm.

Germany's disease control center reported a new fatality Thursday from that outbreak raising the European death toll to 39.  All but one of the deaths and most of the infections have been reported in Germany.  A woman in Sweden died of the infection days after visiting Germany.

 

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An insider’s guide to navigating the host of the legendary Cannes film festival and why this glitzy French enclave has much more to offer than films.

An insider’s guide to navigating the host of the legendary festival and why this glitzy French enclave has much more to offer than films.

For two weeks in May, the picturesque, seaside resort of Cannes is transformed into the core of the international film industry and a debauched haven for the jet set looking to hobnob with moguls and movie stars. Hundreds of thousands descend upon the palm-tree lined Boulevard la Croisette to take part, or at least get a taste of, the Festival de Cannes. Thousands of films are screened (some brilliant, mostly painful); careers are made (or destroyed, as this year’s train wreck Lars Von Trier demonstrated); and the world’s scantily clad starlets pose for an onslaught of paparazzi flashes (think a very pregnant Charlotte Gainsbourg in a provocative, see-through black gown).

FILM SCREENINGS
Unlike most film festivals, Cannes sticks to its elitist reputation by only letting accredited film industry professionals and members of the international press access its screenings and facilities. Due to a fascist-like army of security that could rival the door of Boom Boom Room, public access is virtually non-existent. Fortunately, two of the Cannes sidebars, Critics week and Director’s Fortnight, offer a small allocation of tickets to the public. But lets be honest, if you’re going all the way to Cannes, you want to be strutting up the red carpet past Brangelina into the Grand Théâtre Lumière to watch the next potential Oscar winner. In that case, you better hone your schmoozing skills, hit the party circuit and befriend a film exec to score a fancy official invitation.

**Note: Slimy film execs always have some extra screening and party invitations pocketed away for their friends despite what they tell you. And I would know, I am a slimy film exec.

PARTYING
As someone who is actually at the festival to work, you start to notice that as the fest progresses, meetings are starting later and people are being remarkably less coherent when pitching their films. This is due to partying and films having equal importance at the festival. In full disclosure: most of the work gets done at the numerous beach soirees and nightclubs around town. If you haven’t managed to score a film industry friend, master the art of blogging and you’re a shoe in for any one of the fabulous fêtes.

This year was jam-packed. The usual pop-up nightclubs, Nikki Beach, Le Baron and VIP Room (locations change annually) took the town by storm. In my humble opinion, Baron ruled the roost with its piano accompanied sing-alongs lasting into the wee hours of the following morning. Local mainstay, La Baoli (1 Boulevard de la Croisette, + 33 4 93 43 03 43), was able to keep up with the heavy hitters by playing host to an all night performance from David Guetta. And how could anyone forget how new international sales company, Red Granite, was able snag Kanye West from VIP room for a paltry $1.5M for their company’s official launch at Carlton Beach.

As for the biggest star-studded affairs, the annual Vanity Fair bash was cancelled and AmFar is, well, seemingly a snooze fest. I somehow managed to make my way to the annual Paul Allen party on his mega-yacht, Octopus. It was not exactly a rager, but I will say its hard to eavesdrop on A-list guests when one is leaning against a priceless collection of Jasper Johns and Warhols or taking a tour of Allen’s totally real yellow submarine (complete with cascading waterfall in the background). Just for good measure, we’ll throw in some of those celebs I didn’t notice…Sean Penn, Jodie Foster, Ryan Gosling, Bar Refaeli, etc.

WHERE TO STAY
This is the category that separates the men from the boys. And the holy grail being the über stylish Hotel Du Cap Eden Roc (10 Boulevard John F Kennedy, Antibes + 33 4 93 61 39 01, call for rates). This luxurious, secluded and storied hotel (F. Scott Fitzgerald based the Hôtel des Étrangers in Tender is the Night on it), has been a mecca for the rich and famous since the 1920s. Carved out of a cliff side, the seawater swimming pool extending into the Mediterranean is a huge draw for celebs and paparazzi alike. If the price tag is a bit beyond your reach, it’s still worth it to take a trip out there and check out the hotel bar. I guarantee some good stargazing.

The Hotel Martinez (73 Boulevard de la Croisette, Cannes +33 4 92 98 73 00, 550-2900€) continues to be the top choice for those itching to be in the center of the Cannes universe. This unassuming art deco hotel’s Penthouse floor, which features eleven suites, are the most in demand accommodations in town. The hotel also features a private beach and a 2 Michelin star restaurant, La Palme D’or. During the fest, a barricade surrounds the hotel with hundreds of onlookers waiting for a glimpse of something. I’m not sure what as the only things I’ve ever seen come out of the hotel driveway was a cavalcade of Peugeots.

If you are anti-hostel like me, you need to find a place to stay on the cheap. The best option is to rent an apartment from one of the many vacation rental services in Cannes. There are hundreds of furnished and clean apartments in town that can sleep a few or a small army depending on your desired sleeping configuration. Some reliable options are (www.cannes-accommodation.com, www.azur-online.com).

WHERE TO EAT
The French love their food. So, it will come as no surprise that Cannes has some delectable culinary offerings. However, one must be cautious because all the restaurants kind of look the same. Without proper preparation, you may soon realize you’ve been roped into a townie establishment where the food tastes like cardboard and you are surrounded by the French version of the Jersey Shore.


It may surprise you, but the food of choice in this town is actually pizza. Thin crust. Cheese melted to perfection. A gooey egg dropped in the middle.

I have found there are two schools of thought on who reigns as Cannes pizza champion. Le Vesuvio vs. La Pizza.

At Le Vesuvio (68 boulevard Croisette, Cannes + 33 4 93 43 45 04) the staff is completely arrogant (excluding that bartender who gives me free champagne) and the crowd is as obnoxious as it gets in a bourgeois resort town but the pizza trumps all! Go for the melanzane or the merguez  with an added egg on top.

La Pizza (3, Quai St Pierre Cannes +33 4 93 39 22 56) is a more relaxed industry favorite at the based of Le Suquet, which is the old town of Cannes. It is a bit of a walk from the Croisette but these half-pie pizzas are pure cheese and pure comfort. The traditional Margherita will do and if you are feeling wild, throw an egg on top.

For a more fancy, French experience, La Mere Besson (13 rue des Frères-Pradignac, Cannes +33 4 93 39 59 24) serves up traditional provençale cuisine. Smack in the middle of a very rowdy street, this restaurant is a respite from the madness. You can enjoy your foie gras and rack of lamb in a homey and calming atmosphere.

GRAND CONCLUSION
Whether you are involved in the film business or not, or hate films all together, I think everyone should see the complete sh*tshow that is the Cannes Film Festival. It is something that you need to see and experience to believe. Is it as glamorous as I’ve made it out to be? Probably not, but it's definitely a rip-roaring good time.

 

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Britons will have to pay a new tax on their French holiday homes in a shock move,Those on the Riviera are likely to rocket, forcing owners to sell up because the property would become too expensive to run.

Britons will have to pay a new tax on their French holiday homes in a shock move by President Sarkozy, it was announced today.

The tax only applies to foreigners with second homes that are unoccupied all year whether the property is owned personally, through a company or a trust.

Sarkozy is introducing it to help raise revenues and improve his poll ratings.

The new charge was approved after a marathon debate in the National Assembly which ended as dawn broke.

But France's newly-affluent will pay less after it was agreed that no-one should be taxed more than 50 per cent.

Non-resident French homeowners already pay two taxes - one by the person who owns the house and the other paid by those who live in the property.

Under the new proposals, even if homes are only used for a few weeks a year, the French government will estimate the annual rent that could be gained, and then charge 20 per cent tax based on that sum.


The Perigord region of the Dordogne in France

If the property is let out for the whole year with a local letting agent, it will be exempt.

French property taxes vary by region, so tax payable on one in the South of France will be different from that in Normandy.

Those on the Riviera are likely to rocket, forcing owners to sell up because the property would become too expensive to run.

Already there is some debate whether the tax discriminates against foreign owners and that it will be challenged in the European courts.

Sarkozy won power in 2007 promising that tax would not rise, but he is under pressure as the April 2012 election looms to fend off Left-wing critics who say he helped a wealthy minority.

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Robbie Cammack, a 19-year-old medical student from Moray in Scotland, has died after falling 1,300ft while climbing the Aiguille du Midi peak near Mont Blanc in the French Alps.

The University of Edinburgh student, who set out for the climb with his partner last Tuesday, became lost and called mountain rescue on Wednesday.
However, a rescue helicopter was unable to attend due to inclement weather and the 24-hour delay meant only his climbing partner was rescued.
Mr Cammack's body was recovered by rescue teams on Friday morning, but he was pronounced dead at the scene having suffered fatal injuries from a fall of more than 400m, according to reports.
Speaking about the tragedy, the climber's father Adrian told the Press and Journal newspaper: 'Robbie loved life and brought a laugh and inspiration to so many people - he will be deeply missed.
'He was well known throughout Moray for his achievements, both academic and sporting.'
A Foreign Office spokesman added: 'We can confirm the death of a British national in the French Alps.
'Next of kin are aware and are receiving consular assistance.'

 

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French banks back off lending to overseas property buyers

French lenders are reducing their appetite for lending to overseas borrowers looking to buy property in France amid rumours that some have already reached their lending targets for 2011.  Lenders are increasingly becoming more risk averse and are changing their lending criteria to reduce the risks inherent in their mortgage lending.

French banks ‘reluctant to lend to international investors’

Recent comments from French mortgage specialists Athena Mortgages suggest that French banks are increasingly making it more difficult to agree ‘interest only’ mortgages.  The maximum term for interest only lending has been reduced in some cases and an increase in the net assets required for a pure interest only loan has been raised from 120 to 150 per cent of net assets.

Athena Mortgages director John Busby said: “If we widen the picture we can see that at least two other banks have closed their international branches, Societe Generale and UCB, compounding the trend for an overall increase in the reluctance to lend to international investors. 

“Several banks have reduced the amounts they are willing to lend to borrowers from outside Europe, whilst one major lender has restricted their products to EU citizens only.”

Affordability is crucial if you’re looking to borrow to buy property in France

French banks have also recently begun to adopt new global regulations on the amount of capital that banks are required to hold.  The Basle III criteria mean that total outstanding mortgages should be no more than six times borrower income.

Mr Busby also points to recent moves by French banks to tighten their affordability criteria for people looking to buy property in France.  He said: “Traditionally French lenders will only allow a maximum of 33 per cent of the gross income of the borrower to be set aside for loans such as mortgages. However, lenders have started to change the goal posts, refusing borrowers who they feel do not have sufficient funds to live on even though they meet the 33 per cent gross income requirement.”

 

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The hotel maid who accused Dominique Strauss-Kahn of trying to rape her has said she is prepared to face him in court

The hotel maid who accused Dominique Strauss-Kahn of trying to rape her has said she is prepared to face him in court - after he vowed to fight to clear his name.


The former head of the IMF arrived at a hearing in Manhattan accompanied by his wife, Anne Sinclair, to heckling from a group of chambermaids who shouted "Shame on you" as he walked into the building.
The 62-year-old was one of the most influential people in the global economy and was widely considered to be a leading contender for the French presidency until his shocking arrest three weeks ago.
He appeared in court to deny seven charges, including attempted rape, following what prosecutors say was a brutal assault on a 32-year-old woman in his luxury suite at Manhattan's Sofitel on May 14.
The maid's lawyer, Kenneth Thompson, said his client was a hard-working single mother speaking up for women all over the world.

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French banks more reluctant to offer property loans to overseas buyers

There has been a dip in the desire of French banks to lend to international investors buying property and it is rumoured that some have already reached their targets for residential lending for the year, indicating a lack of liquidity and increase in risk aversion.

French loan specialists Athena Mortgages points out that there also seems to be behind a reduction in the available durations for interest only mortgages and an increase in the net assets required for a pure interest only loan from 120% of net assets to 150%.

‘If we widen the picture we can see that at least two other banks have closed their international branches, Societe Generale and UCB, compounding the trend for an overall increase in the reluctance to lend to international investors. Several banks have reduced the amounts they are willing to lend to borrowers from outside Europe, whilst one major lender has restricted their products to EU citizens only,’ said director John Busby.

Another area that French banks appear to be tightening up on is affordability and the ratio of lending to gross income. ‘Traditionally French lenders will only allow a maximum of 33% of the gross income of the borrower to be set aside for loans such as mortgages. However, lenders have started to change the goal posts, refusing borrowers who they feel do not have sufficient funds to live on even though they meet the 33% gross income requirement,’ he explained.

In addition, French banks have started adopting Basle III criteria, a new global regulatory standard on bank capital adequacy and liquidity, which stipulates that total outstanding loans should be no more than six times borrower income. ‘Serial investors with large buy to let portfolios and first time buyers, in particular, are the most vulnerable to the changes, as lenders appetite for risk recedes,’ added Busby.

Overseas investors are speaking out about the way French banks work. Helen, 47, an accountant from Kent, recently wrote to Athena having had a bad experience approaching a bank directly.



‘The main reason for not going with that bank is our previous experience with them and also the experience of a friend of mine here in France.  We both feel they ask more questions and require more information then is reasonable, they take a long time to reach a decision and then change the goal posts between offering a decision in principle and making the final offer,’ she said.

Busby said that unfortunately this kind of experience is not uncommon. The company advises buyers begin investigating mortgage options as early as possible in the buying process and get a decision in principle from a broker.

‘Ensure you qualify for life assurance and find out if you will require a medical. Ensure all paperwork for the loan application is as complete as possible prior to signing a Compromise de Vente. Once you are ready to purchase send the completed file to an independent broker who is aware of the criteria and can place the application quickly with the right bank to match your profile,’ Busby said.

‘Sign and return all documents as quickly as possible to keep the momentum going as the longer the file is in process, the more likely criteria can change or rates increase,’ he added.

 

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French former minister went to Morocco for an orgy with "little boys", according to an ex-minister, who claims the country's strict privacy laws led to a cover-up.

Luc Ferry, a French philosopher who was in government from 2002 to 2004, told a TV chat show that an unnamed minister had been "caught" taking part in "an orgy with little boys" in the tourist town of Marrakesh.
"All of us here probably all know who I'm talking about," he told Le Grand Journal on channel Canal Plus on Monday night. Asked if he had any proof, he said: "Of course not. But I have testimony from cabinet members at the highest level, state authorities at the highest level."
He said he received the information from top government sources, "particularly from the prime minister", suggesting that reporting of the affair never reached the public due to strict libel and privacy laws.
Mr Ferry declined to name the former minister, implying that he feared France's notoriously strict libel laws. "If I let his name out now, it's me who will be charged and doubtlessly convicted, even if I know that the story is true."
His comments came amid an emotive national debate over whether journalists had failed to lift the lid on cases of sexual harassment because politicians' private lives have long been deemed off limits.

 

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