IMHO - you just need to tell her like it happened... It's not like you were looking to find this out...it just happened, i live is a large small town and I hear things about people too... it happens

I agree with Hankster on this... this could be huge in your Therapy, although i can also see the fear of telling her you know...but a lie does not a firm foundation for a therapeutic relationship make.

you:

So T I ran into so and so and they said they knew you and mentioned this......

I don't know what to do with this........ can you help me here, T.