No Immunity For Lewinsky

CBS News has learned a federal judge has ruled that Monica Lewinsky does not have immunity from prosecution in the Ken Starr obstruction of justice investigation.

This long awaited ruling was made in secret and remains officially under seal. It is a major turning point in the case with serious implications for the president.

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The immunity decision means Starr has the initiative again. Now, he can hold the threat of an indictment over Lewinsky to persuade her to cooperate with the grand jury.

It also gives him the option of putting Lewinsky on trial, a trial that would publicly air whatever evidence he may have involving the president.

The immunity question rose early in the investigation. Starr's office offered immunity in return for her complete cooperation. Lewinsky signed the agreement, but Starr did not. He decided Lewinsky was not living up to her end of the bargain.

Lewinsky's attorney, Bill Ginsburg, asked the judge to enforce the agreement. Argument on this issue has held up the investigation for months. CBS News has learned that Lewinsky and prosecutors have not been in contact with prosecutors for many weeks.

Only the parties in the case were informed of the secret decision. When asked for comment today, Starr's spokesman, Charles Bakalay told CBS News, "We have no comment on any aspect of a sealed court proceeding."

Lewinsky's attorney, Ginsburg, told CBS News, "There is no order that I am aware of."

This development will be bad news at the White House because it gives Starr the upper hand with the most important witness in the case. With the immunity issue decided Starr is now free to call Lewinsky to the grand jury.

And on another front, CBS News has been told by a source close to the investigation that a Washington grand jury will probably indict Webster Hubbell by the end of this week, perhaps tomorrow.

Hubbell has been under investigation for tax fraud in connection with $700,000 in income he received from friends of the administration, for little or no work.