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Former head of IMF and leading French presidential candidate Dominique Strauss-Kahn appears at bail hearing as reports claim sexual assault case against him could be close to collapse 3.56pm: My colleague Dominic Rushe is in court now. He says the court is packed, although the crowd is smaller than last time, and there are no maids outside protesting. “It’s bank holiday weekend [independence day, 4 July, is on Monday] so everyone wants out of her asap. James Cox, law professor at Duke University, told Dominic: “This has got to be the prosecution’s worse nightmare. You do what you think is right and then your witness goes south on you.” He said the prosecution was right to act decisively and quickly on the case when the charges were brought and could not be blamed for the media furore that followed. “You can not have a chambermaid bringing allegations against an aristocrat like Strauss-Kahn without there being this find of frenzy,” he said. But, said Cox, given subsequent developments he said he was surprised that the prosecution had not done more homework on their witness ahead of making such strong statements about the case and the strength of their witness. 3.53pm: The Associated Press news agency is now reporting that the New York district attorney will release Strauss-Kahn without bail, citing an “AP source”. 3.52pm: The Wall Street Journal is reporting that prosecutors have agreed to modify Dominique Strauss-Kahn’s bail and end his house arrest. 3.50pm: Strauss-Kahn is arriving at court now. 3.49pm: Strauss-Kahn is on his way to court. CNN has just been showing pictures of him and his wife leaving their residence to head to court. 3.33pm: Dominic Rushe writes that the local New York media is being let into the court first, much to the annoyance of the international media. 3.31pm: In a clear-headed piece at the Atlantic , Andrew Cohen draws out what he reckons is the key point from the New York Times’s article. It will be virtually impossible to neutralise this (from the Times’s piece): “According to the two officials, the woman had a phone conversation with an incarcerated man within a day of her encounter with Mr. Strauss-Kahn in which she discussed the possible benefits of pursuing the charges against him. The conversation was recorded.” If this is true, it establishes a motive for the woman to (falsely) accuse Kahn of rape after a consensual sexual encounter. It is enough, alone, to establish reasonable doubt? Prosecutors seem to think so and they are probably right. This accusation comes from the New York Times piece and cannot be corroborated by the Guardian. 3.24pm: Paul Harris in New York adds that CNN is reporting that Strauss-Kahn’s criminal charges might be reduced to a misdemeanour. “That means DSK will have his bail reduced greatly or even removed altogether and he will be free to travel throughout the US. Eventually, defence sources tell the channel, the defence will push to have all the charges dropped.” 3.23pm: My colleague Dominic Rushe writes from New York. He says there are around 200 journalists lining up at the court to get in and jockeying for position: French, German, British, American. Dominic writes: “Sympathy seems to be with the maid still in the line. She may have lied about her past but the question remains: was she assaulted?” 3.17pm: Just to translate “on his own recognizance” ( see 3.06pm ), it is a term used when the defendant is released but promises to attend all court proceedings and not to engage in any illegal activity or prohibited conduct. A financial bond is often set, but not demanded unless the court orders it forfeited. 3.10pm: Reuters has interviewed the brother of the woman who has accused Dominique Strauss-Kahn of sexual assault and attempted rape. He said she was the victim of a smear campaign. Mamoudou, whose surname is being withheld to protect his sister’s identity, said from Guinea: “These are lies that have been invented to discredit my sister.” 3.06pm: Bloomberg news is already tweeting that prosecutors have agreed to release Strauss-Kahn prosecutors “on his own recognizance”. The court hearing will begin in around an hour and a half. 3.05pm: In court in May, bail was set for Dominique Strauss-Kahn at $1m (£624,000) in cash with a $5m insurance bond. He was required to surrender all his travel documents and remain under house arrest in Manhattan under 24-hour armed guard. Stringent conditions included an electronic bracelet that sent a signal to a security company and a police station the moment Strauss-Kahn left the property, and video cameras to monitor him inside the property. The conditions are costing Mr. Strauss-Kahn $250,000 a month. The New York Times says that under the relaxed conditions of bail to be requested today, the district attorney’s office would retain Strauss-Kahn’s passport but he would be permitted to travel within the United States. 2.55pm: Dominique Strauss-Kahn will appear at the state supreme court in Manhattan this afternoon for a hearing at which Justice Michael Obus is expected to consider easing the former IMF chief’s bail conditions. The hearing comes as reports claim the sexual assault case against the man once considered a leading Socialist candidate for the French presidency is on the verge of collapse. As my colleagues Ed Pilkington, Dominic Rushe and Angelique Chrisafis report , there were claims in the New York Times last night that significant problems had emerged in the case against Strauss-Kahn. These could see the conditions of his house arrest in New York being relaxed with immediate effect. The paper claims “major holes” in the case will be admitted in court as early as today. The claims have thrown French politics into disarray , the second time this case has done so. Strauss-Kahn, a Socialist, was seen as the leading candidate to beat Nicolas Sarkozy in next year’s presidential elections until the allegations against him dramatically emerged in May. Strauss-Kahn is accused of sexually assaulting and attempting to rape a maid at the Sofitel hotel in Manhattan on 14 May. France’s former Socialist prime minister Lionel Jospin described the latest developments as a “thunderbolt” as allies speculated Strauss-Kahn may now be able to run after all. His job at the IMF has been taken by former French finance minister Christine Lagarde. This week, the Socialist party launched its primary race for a candidate on the basis that Strauss-Kahn’s political career was over. But the dramatic developments in New York have prompted some members to call on the party to suspend the process. Citing “two well-placed law enforcement officials”, the New York Times claims Strauss-Kahn’s “accuser has repeatedly lied”. Although forensic tests found unambiguous evidence of a sexual encounter between Mr Strauss-Kahn, a French politician, and the woman, prosecutors now do not believe much of what the accuser has told them about the circumstances or about herself … Senior prosecutors met with lawyers for Mr Strauss-Kahn on Thursday and provided details about their findings, and the parties are discussing whether to dismiss the felony charges. In addition to the New York Times claims, the Associated Press has reported that prosecutors have raised questions about the woman’s credibility and background. But Kenneth Thompson, a lawyer for the woman (who is not being named), told the NYT: “Nothing changes one very important fact, namely, that Dominique Strauss-Kahn violently sexually assaulted the victim inside of that hotel room at the Sofitel.” Here’s a timeline of the case so far , courtesy of my colleague Richard Nelsson: 13 May: Dominque Strauss-Kahn, head of the IMF, checks into $3,000 a night suite, room 2806, at the luxury Sofitel hotel in midtown Manhattan. 14 May: At around midday, a 32-year-old maid enters the suite, which she thought unoccupied, and an attack by the Frenchman is alleged to have occurred after she opened the bedroom door and found him naked. She reports what happened to her supervisor who calls the police. 14 May: At around 4.40pm Strauss-Kahn is pulled off a Paris-bound flight minutes before take-off from New York’s JFK airport and arrested . He is accused of a sexual assault on a maid in his suite. He asks “What is this about?” and 15 minutes later, says ” I have diplomatic immunity “. 15 May: The 62-year-old economist is charged with “criminal sexual act, unlawful imprisonment, attempted rape” of the so far unidentified woman employee of the hotel. 16 May: He enters Manhattan Criminal Court for a hearing . A New York judge accepts the prosecution argument that Strauss-Kahn is a flight risk and orders him detained without bail in New York’s Rikers Island jail . 17 May: Strauss-Kahn is reportedly under suicide watch on Rikers Island. US treasury secretary Timothy Geithner says the Frenchman is “obviously not in the position to run the IMF”. 18 May: The victim, an immigrant from the west African nation of Guinea, testifies behind closed doors at a grand jury hearing. Denies she had consensual relations with Strauss-Kahn. The New York police conduct forensic search of hotel suite. 18 May: Strauss-Kahn resigns as managing director of the IMF and denies all the allegations. 19 May: He is formally indicted by the grand jury and the seven charges against him are confirmed. Faces a potential maximum of 74 years prison if convicted. Bail is granted after he agrees to post $1m cash and $5m bond and submit to round-the-clock surveillance under house arrest 20 May: Released from Rikers and moves into an apartment near Wall Street, before moving on to a townhouse rented for a reported $50,000 a month. 23 May: Newspaper reports suggest that traces of Strauss-Kahn’s semen have been found on the maid’s shirt. 27 May: French president Nicolas Sarkozy calls it a “sad” affair. 6 June: At a brief hearing at Manhattan criminal court, the former head of the IMF pleads not guilty to allegations of attempted rape and the sexual assault of a hotel maid. His lawyers say they need six weeks to assess evidence collected by the US authorities. Hundreds of hotel workers gather outside the courthouse roaring their disapproval at Strauss-kahn by shouting “shame on you”. 28 June: Christine Lagarde selected to serve as IMF managing director. Dominique Strauss-Kahn France IMF United States Paul Owen guardian.co.uk