1st Ld Writethru: French magistrates to take over inquiry into Fillon wife's fake job

French magistrates are to take over the probe into allegations that presidential candidate Francois Fillon had given his family fake jobs, prosecutors said Friday.

It was a fresh blow for the conservative who is already struggling to overturn a drop in his public support.

The financial prosecutor in charge of a preliminary inquiry into the claims decided to take the next step in proceedings by appointing three judges to the case.

The magistrates, which have more power to investigate, will examine a possible misuse of public funds, lack of full and proper disclosure, and misappropriation of assets.

The judges have the choice to drop the case, put the Fillon couple under formal investigation, or send them to trial.

Under French law, the investigation would be suspended for the five-year term if Fillon were to become France's next head of state.

On Jan. 25, the satirical weekly Le Canard Enchaine broke "Penelopegate" -- named after Penelope Fillon -- after revealing that she had been paid 900,000 euros (953,640 U.S. dollars) for her jobs as her husband's parliamentary assistant and at a culture magazine. However, there was no evidence she had really worked, the report added.

The allegations sent the conservative politician, who projected himself as a honest and morally irreproachable contender, backpedaling.

Recent polls showed the former prime minister losing his top spot after trailing in the election's first round behind Marine Le Pen, head of National Front party, and centrist independent challenger Emmanuel Macron.

Fillon had repeatedly denied any wrongdoing, saying his wife's job as his parliamentary assistant "perfectly justified".

Under French law, it's legal for lawmakers to hire family members as their assistants, but it's illegal to pay them for a fictitious job. Endit