Walsh Trial Underway In Boston

After a nearly four-year long FBI investigation, the trial of William H. Walsh, the city councillor accused of 59 counts of bank fraud and conspiracy, got underway last week in the United States District Court in down-town Boston.

Walsh is accused of heading a scheme to defraud Dime Savings Bank of New York of approximately $8 million to finance condominium developments in Massachusetts.

If convicted on all counts, he faces up to 208 years in prison and $14.75 million in fines. In addition, Walsh would become the second elected official in Cambridge's history to be convicted in federal court. Mayor John Lyons was convicted in 1941 on charges of bribery and public official corruption.

The Walsh trial is expected to last between four and six weeks.

The government alleges that Walsh tricked Dime into issuing mortgages on condominiums by surreptitiously offering borrowers "second mortgages" to cover their down payments. Dime's loans required 20 percent down.

Walsh defrauded Dime to obtain the mortgages because a personally-guaranteed, multi-million dollar loan to develop condominiums was in jeopardy unless he could secure more buyers, according to prosecutors.

Walsh maintains his innocence. He said the caseresulted from "Dime getting caught with theirpants down after making a lot of bad loans and notverifying anything."

He said he believes that Dime is using him as ascapegoat for failed mortgages

Walsh maintains his innocence. He said the caseresulted from "Dime getting caught with theirpants down after making a lot of bad loans and notverifying anything."

He said he believes that Dime is using him as ascapegoat for failed mortgages