Judge sides with whistleblower in dispute

TAMPA -- In 1998, Jeanette Walden told federal investigators she had information about fraudulent billing at GTE Data Services.

Federal prosecutors took up the case and sent her a letter saying that as long as she provided complete and truthful information, she would not be prosecuted.

So she was shocked when three years later, after cooperating with investigators, she was charged with making false statements, conspiracy and fraud.

"It didn't make any sense," said Walden's lawyer, Michelle Peden.

U.S. District Court Judge James Whittemore agreed, filing an order Wednesday stating that the federal government broke its promise. The government did not contend that Walden committed perjury, made false statements or otherwise wavered from her part of the agreement, Whittemore wrote.

"Accordingly, I conclude that the government unilaterally breached that agreement."

Walden, working at GTE Data Services, began to suspect that some employees were fraudulently billing Blue Cross, Blue Shield. She left the company in 1997 and went to work as a contract employee for Blue Cross.

In 1998, she spoke with Blue Cross' legal department about her allegations and eventually federal investigators became involved. Walden was concerned about her own culpability and asked for immunity from prosecution.

A letter from federal prosecutor Jack Fernandez said she would not be prosecuted for anything she said. Despite cooperating, Walden was indicted last year.

In May, Fernandez, who had left the prosecutors office before Walden was indicted, said he did not mean to grant immunity.

The new prosecutor asked the judge to allow the government to nullify the agreement. The judge was having nothing of it.

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