Investigators have found evidence of a sexual encounter between former IMF chief Dominique Strauss-Kahn but an unidentified law enforcement official says the accuser has repeatedly lied, the New York Times reported.

Prosecutors from the office of Cyrus Vance Jr., the Manhattan district attorney plan to tell the judge  on Friday that they have problems with the case based on discoveries by investigators, according to the report.

The woman accusing Strauss-Kahn was a hotel maid at the Sofitel in Mid-town Manhattan. She accused him of sexually assaulting her by trying to rape her and alleging he forced her to have oral sex.

Among investigators' discoveries are:

-          The woman's conversation with a jailed man arrested on charges of possessing 400 pounds of marijuana who, along with other individuals deposited about $100,000 to the woman's account bank in the past two years, according to two officials

-          The woman paid hundreds of dollars in phone charges to five companies. The woman has previously said she only had one cell phone and said the deposits were made by a man described by her as her fiancé and his friends

-          An asylum application included mention of a previous rape, but there was no account of that in the application.

-          Claims she had ben genitally mutilated, but there was a difference in the account in the asylum application