I maybe wrong about the book but I think it was in Franz's book Crisis of Conscience or perhaps In Search of Christian Freedom that mentioned a similar story to what you're saying. If I recall it was a woman who went to a clinic to obtain a medication for a sexually transmitted disease. The receptionist was a JW who recognized her and told the elders. The doctor could have been sued but the patient decided not to.
There was even a Watchtower that stated that if you knew of any wrongdoing you were obligated to report it to the elders even if it was against the law to do so.