SEATTLE -- The University of Washington agreed to pay $35

million to settle claims it systematically overbilled Medicaid and

Medicare and that it destroyed documents to hide the practice.

The federal government will get more than $25 million under the

settlement Friday and Washington state $2 million, while Mark

Erickson, the whistleblower who brought the fraud to light, will

receive $7.25 million.

"I feel vindicated," said Erickson, 35, who is between jobs

and doesn't know what he's going to do with the money. "It's been

a battle for five years."

U.S. Attorney John McKay refused to say how much the overbilling

totaled. But he told a news conference that had the case gone to

trial, the government would have sought a substantially higher

figure.