Disgraced former IMF chief Dominique Strauss-Kahn was charged with involvement in an organised vice ring that procured prostitutes for top-class clients, lawyers said.

Through this prosecution they are trying to create a new crime punishing clients of prostitution where the law does not provide for this

Prosecutors said the 62-year-old former Socialist Finance Minister and one-time presidential favourite had been released on €100,000 bail after the charges on “aggravated pimping as part of an organised gang”.

Mr Strauss-Kahn was called in by investigating magistrates in the northern French city of Lille two days earlier than expected and charged with an offence that could carry 20 years in prison if he is convicted.

“He firmly declares that he is not guilty of these acts and never had the least inkling that the women he met could have been prostitutes,” said Richard Malka, one of Mr Strauss-Kahn’s counsels.

“Dominique Strauss-Kahn was placed under judicial control and was forbidden from contacting defendants, civil plaintiffs, witnesses and the press regarding the procedures,” prosecutors said in a statement.

Mr Strauss-Kahn’s lawyers immediately said they would appeal the charge.

“It goes without saying that we will ask for the cancellation of this decision,” said one of his lawyers, Henri Leclerc.

Mr Strauss-Kahn “has never broken the law,” Mr Malka said. “Through this prosecution they are trying to create a new crime punishing clients of prostitution where the law does not provide for this.”

He also suggested that Mr Strauss-Kahn was being pursued because of his high profile and links to France’s Socialist party in the midst of a heated campaign for France’s April-May presidential election.

“As a result of behaviour that is purely his own business, Mr Strauss-Kahn has found himself − largely because of his fame − thrown to the wolves, by coincidence less than a month before election,” Mr Malka said.

Mr Strauss-Kahn’s name came up as police were investigating a pimping operation that saw sex workers from brothels over the Belgian border being brought to France for orgies in high-class hotels in Lille and Paris.

Mr Strauss-Kahn admits that he took part in some of these parties, one of which was said to involve women being flown to Washington to entertain him while he was still managing director of the International Monetary Fund.

But, through his lawyers, he has denied knowing the escorts were paid.

Using prostitutes is not illegal in France, but prosecutors are seeking proof that Mr Strauss-Kahn was aware the parties were arranged by an organised pimping ring and paid for by other guests misusing company funds.

Several Lille-based businessmen and policemen have been accused of taking part in the ring. Mr Strauss-Kahn told police he did not suspect the women were prostitutes because he was introduced to them by senior police officers.

Mr Strauss-Kahn’s lawyers will also be in court today in New York for the first hearing in a civil case brought against him by Nafissatou Diallo, a hotel maid who alleges he sexually assaulted her.

Judge Douglas McKeon will be asked to rule on a motion by Mr Strauss-Kahn’s lawyers urging him to dismiss the case on the grounds that, at the time of the alleged attack in May last year, their client had diplomatic immunity.

Judge McKeon has said he will give a written judgement on whether the case can go forward within a few weeks. If he accepts the motion, Mr Strauss-Kahn’s US legal woes may be over. If not, Ms Diallo’s case for damages will go forward.

These two cases are the most serious threats facing Mr Strauss-Kahn after the dismissal of two earlier criminal investigations that were brought against him in the US and in France after his spectacular fall from grace.

Until the scandals erupted, Mr Strauss-Kahn was considered the favourite to become the Socialist Party’s presidential candidate and the front runner to defeat incumbent right-winger Nicolas Sarkozy in next month’s election.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.