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Walsh Waits for Verdict While Jury Deliberates Bank Fraud Case

Cambridge City Councillor Could Face Up to $14.75 Million in Fines; Currently Passes Time With `Coffee, Cigarettes, Cards, Jokes'

By Thomas D. Horan jr.

The trial of Cambridge City Councillor William H. Walsh is not over yet, but his punishment has already begun.

Walsh now spends most of his day in the third-floor cafeteria of the U.S. District Courthouse, drinking coffee, smoking a pipe and contemplating the 59 counts of bank fraud and conspiracy he faces.

In a jury room eight stories above, 12 of his peers are doing roughly the same thing.

The jury in Walsh's case is now spending a fourth day deliberating about whether the councillor is guilty of organizing a plan to defraud the Dime Savings Bank of New York of approximately $8 million.

When the jury delivers its verdict, which one source hinted might be as early as this morning, Walsh may never campaign again. He faces up to 208 years in jail and $14.75 million in fines.

Yesterday, Judge Mark L. Wolf '72 dismissed one of the jurors. Court officials would not say why the member left, although Wolf received a memo from the jury in the morning stating they were having trouble communicating with one member.

Although Walsh is not allowed to leave the courthouse while the jury is in session, he says he is relieved that the case has lasted so long.

"If [the jury] come[s] back quickly, you know you're history," he says.

Still, the wait is a strain.

"This is the worst for the defendant, because pretty much all he can do is sit and work on his ulcer," says Cambridge Civic Association activist Jack Martinelli, who has been watching the trial.

Each morning Walsh and his California-based attorney, Thomas G. Kontos, enter the courtroom together with Walsh's supporters, a small but dedicated band that includes his mother.

In the earlier weeks of the trial, which began two months ago, the courtroom was often packed with observers. Martinelli says there used to be as many as 12 other attorneys taking notes for clients in similar straits. Now, there are less than 10 onlookers present.

There is little these days to draw spectators. After the court comes to order, the judge confers in private with Walsh, Kontos, Assistant U.S. Attorney Peter J. Mullin and Pamela Merchant, a member of the New England Bank Fraud Task Force.

When they return, the judge responds to the jury's questions or memos. Then the jury files out and Walsh heads back to the cafeteria.

The entire courtroom procedure sometimes takes less than an hour. Still, Walsh must stand to hear "The United States versus Walsh" every morning. In the cafeteria he winces, remembering.

"You realize you're"--he pinches his thumb and index finger together and gestures at the tiny space in between--"against the whole government."

Walsh, his friends and his lawyer command a table by a window, where they pass the time talking and working on other business.

"Coffee, cigarettes, cards, jokes," he says, when asked how he passes the time.

"I never thought I'd like a cafeteria in a federal building this much, but I'm starting to grow quite fond of it," he says. "I've gotten to know all the employees. I say hello to everyone. It feels like campaigning."

Despite the friendly atmosphere, Walsh says he will not be upset to leave the cafeteria, and this case, behind.

"It's a very hard experience to go through," he says. "It'll always leave a mark."

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