Tuesday, May 17, 2011

Strauss-Kahn Held for Questioning in Assault, Police Say

May 14, 2011, 10:19 PM EDT

By Karen Freifeld and Sandrine Rastello

(Adds IMF had no comment in the fourth paragraph.)

May 14 (Bloomberg) -- Dominique Strauss-Kahn, managing director of the International Monetary Fund, was pulled from an Air France flight in New York today and held for questioning about an alleged sexual assault, a police spokesman said.

New York Police Department spokesman Brian Sessa said the alleged incident took place at a Manhattan hotel, and Strauss- Kahn hasn?t been charged.

The New York Times reported the incident occurred at the Sofitel New York, 45 West 44th Street, in Midtown. The newspaper said a female employee at the hotel reported the alleged assault.

IMF spokesman William Murray had no immediate comment.

Police said they didn?t immediately know if Strauss-Kahn had hired a lawyer to assist him.

Strauss-Kahn, 62, was scheduled to attend a meeting of euro area finance ministers in Brussels on May 16. Officials are to discuss the possible increase of a 110-billion ($155-billion) loan package to Greece amid concerns the country may be unable to return to markets to finance its debt next year.

This is the second time since he took the helm of the IMF in November 2007 that Strauss-Kahn has faced allegations of misconduct.

In 2008, he had a relationship with Piroska Nagy, a female economist at the IMF, who quit in August of that year. An investigation by the IMF board, released in October 2008, concluded that while he had made a ?serious error of judgment,? he shouldn?t be fired.

Strauss-Kahn apologized to his staff and family, which includes four children from two previous marriages.

--With assistance from Dan Hart and Kevin Costelloe in Washington. Editors: Sylvia Wier, Pat Oster

To contact the reporter on this story: Karen Freifeld in New York at kfreifeld@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net. To contact the reporters on this story:

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