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Walsh Classified as 'Fugitive'

City Councillor Has Yet To Respond to Fraud Indictment

City Councillor William H. Walsh has yet to surrender himself to the FBI since his indictment for bank fraud Thursday and has been classified as a "fugitive," according to federal officials.

"We do not know his whereabouts right now," said FBI spokesperson William J. McMullin. "There are a number of agents looking for him, [both] in and out of the state."

McMullin would not comment on the specifics of the search, although he said the FBI is capable of searches "nationwide and throughout the world."

Of the 19 people indicted yesterday, 16 have been arrested and three, including Walsh, are still at large, according to McMullin.

When the third-term councillor is arrested, he will face arraignment before a federal magistrate to set bail and arrange a court date. A federal court in Boston will hear the trial.

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If convicted on all 59 charges of bank fraud, making false statements to a federally insured bank and conspiracy, Walsh, 47, can be sentenced a maximum of 208 years in prison and $14.75 million in fines.

The indictment was the result of a two-year FBI investigation. Although the charges accuse Walsh of defrauding Dime Savings Bank of New York, McMullin said "our investigation is continuing in this matter." But he would not reveal which banks were being investigated in connection with Walsh.

With the other defendants, Walsh--a practicing lawyer and a longtime supporter of developer rights in the city--is accused of allegedly making false down payments on condominium projects to inflate prices and secure larger mortgage loans for other investments.

In the wake of the indictment, Cambridge residents and community groups yesterday had mixed feelings about Walsh, some calling on him to leave his post and others saying they stillsupport the embattled politician.

"They [the legal system] should throw him injail," said Brookline resident Rick M. Goldstein,34.

Riverside resident Ken A. Johnson, 55, alsosaid Walsh should be found guilty and that theindictment was "the best thing that ever happened.I hope he gets 100 years [in jail]." He added,"I've watched council meetings, and I never caredfor him."

Other Cantabrigians, however, still said theysupported the councillor, who has been a longtimesupporter of developer's interests and opponent ofrent control.

"Of course, he's innocent until proven guilty.I voted for him, and I hope everything turns outokay for him. I like him as a councillor, despitehis breach of ethics," said Frank J. Murphy, 54,of North Cambridge.

The Cambridge Civic Association, the city's"good government" political party, said yesterdaythat Walsh should temporarily leave his seat oncouncil.

"We have not asked for councillor Walsh toresign," said David R. Leslie 69, executivedirector of the CCA. "We ask, however, that Walshtake a leave of absence until the matter isresolved, as the integrity of the council must bemaintained."

CCA-endorsed councillor Jonathan S. Myerscalled Walsh's indictment a "tragedy for Walsh,for his family, for the City Hall, and forCambridge.

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