A French court has placed former International Monetary Fund chief Dominique Strauss-Kahn under formal investigation for alleged involvement in a prostitution ring.

Strauss-Kahn posted a $133,000 bail to avoid sitting in jail while prosecutors pursue their case. A formal investigation in France is one step short of formal charges.

Prosecutors allege Strauss-Kahn helped supply prostitutes for business clients at a luxury hotel in the northern French city of Lille and had parties with the women.

His lawyer accuses authorities of inventing the charges because of his fame.

Strauss-Kahn was considered a candidate for the French presidency before charges that he raped a maid in a New York hotel last year destroyed his political career. He was also forced to step down as IMF chief.

The rape charges were later dropped, but the maid filed a civil suit against him.