Dominique Strauss-Kahn, former International Monetary Fund (IMF) chief is being questioned today by French police for his involvement in a prostitution ring.

Prostitutes questioned by police have admitted to having sex with Strauss-Kahn, the former front runner for the French presidency. Strauss-Kahn, 62, is now being held in custody on suspicion of complicity in pimping, as well as misuse of company funds. In France it is not illegal to use prostitutes, but paying for them with company funds could face prosecution. The corporate funds are believed to have come from a large French construction company.

Dominique Strauss-Kahn has admitted to taking part in orgies, but never paid, or asked others involved if they were being paid. He said that these sexual encounters were arranged by friends, and is part of his uninhibited sex life. The sex parties were said to have taken place between late 2010 and early 2011 in Paris and Washington D.C. Strauss-Kahn previously lived in the U.S. capital while he was head of IMF. He resigned from that position last May.

The former IMF chief claimed he did not know the women were prostitutes, with his lawyer, Henri Leclerc stating to French television, I challenge you to distinguish a naked prostitute from any other naked woman.

Eight people are currently under investigation, one being a local police commissioner. The scandal has been nicknamed by French newspapers as The Carlton Affair, after the hotel that some of the meetings took place in.

This isn't the first time that the 62-year-old has been caught in a sex scandal. Strauss-Kahn was arrested last May for reportedly attempting to rape a New York maid. Those charges were later dropped. A French writer also accused Strauss-Kahn of attempted rape last October. The attempt reportedly happened in 2003. Prosecutors dropped the investigation because of the length of time that passed from the attack.