The sexual assault case against disgraced former IMF chief Dominique Strauss-Kahn is falling apart as the investigators have found evidence for lies, prevarication and possible criminal links of his accuser, a Manhattan hotel maid.

It has been revealed that the hotel maid who accused Strauss-Kahn of attempting to rape her had lied to the investigators and had issues with her asylum application.

The New York Times also reported that the 32-year-old woman had talked to a jailed man a day after the alleged sexual assault took place. She has been recorded talking about how she could benefit out of pressing ahead with the case against Strauss-Kahn. The report said the person she talked to was among many people who had deposited money into her bank account over the last two years. This person had been arrested earlier on charges of possessing marijuana, it was reported.

The Guinean maid had told prosecutors about a previous case of rape and that she had been subjected to genital mutilation, but these things were not included in her application.

Legal experts have said they wouldn’t be surprised if the prosecutors decided to back away in the light of new revelations.

The NY Times reported that Strauss-Kahn's lawyers met with prosecutors on Thursday to consider whether felony charges can be dismissed. According to sources within the law enforcement, the case was on the verge of collapse.

According to the Associated Press, the prosecution was considering if new questions about the woman's background and recent actions would affect her credibility on the witness stand.

The 62-year-old French presidential hopeful had been pulled out of a plane and arrested after New York police got a complaint from the hotel maid that he tried to sexually attack her in his hotel suite. The accuser had told police Strauss-Kahn forced her to give him oral sex and puller her clothes off.

When he was arraigned in court, he pleaded not guilty. Strauss-Kahn has also undergone a physical examination sought by the prosecutors to gather evidence against him.

Strauss-Kahn, who was widely expected to run against President Nicolas Sarkozy in the French presidential elections, would have faced a jail term of between 15 and 20 years if the charges against him are proved in court.

Reports say there is considerable amount of forensic evidence against him, but his defense says the encounter was not forcible. They have also said they are privy to information that could gravely undermine the credibility of accuser.

The new revelations will have an impact on his bail review hearing in court. He is expected to secure less stringent bail conditions in the light of the new twist the case has taken.