International Monetary Fund’s head, Christine Lagarde, is now embroiled in some personal trouble of her own. A French magistrate has formalized an investigation into allegations that date back to her time as French Finance Minister. CCTV America’s Owen Fairclough reports.

French authorities have stepped up a three-year fraud inquiry over a business dispute involving Bernard Tapie, a prominent ally of former President Nicolas Sarkozy. Lagarde was Sarkozy’s finance minister at the time.

Lagarde denies accusations that she was negligent over a $531 million arbitration payout to Tapie in a business dispute. The allegations surfaced shortly after she took over the IMF in 2011.

Lagarde’s lawyer called on the IMF to continue backing her. Her tenure at the IMF has so far been smooth.

Her predecessor and compatriot Dominique Strauss Kahn was forced to quit over a sex assault charge that was later dropped. Overseeing two multi-billion dollar bailouts of Greece and Ukraine has boosted her international standing even further.

Follow Owen Fairclough on Twitter @cloughieDC