Allegations of ethics violations and "a shadow government in Cambridge" flew in the City Council meeting last night, as the council voted to investigate charges of impropriety against Councillors William H. Walsh and Sheila T. Russell.

The charges, made by Michael H. Turk, co-chair of the Cambridge Tenants Union (CTU), contended that Walsh, as a senior partner of Ferraro and Walsh law firm violated ethics rules by representing clients whose interests he voted on as a councillor.

Turk charged specifically that Walsh represented his clients in case before the rent control board, while at the same time voting on rent control issues on the council.

The CTU also faulted both Walsh and Russell for the potential conflict of interest of serving as councillors while being general partners in Shrewsbury II real estate trust.

"Walsh, as an individual, was involved in a conflict of interest," said Turk. "To preserve the integrity of this institution these charges have to be taken seriously."

Walsh, who is currently under federal indictment on 59 counts of bank fraud, countered that the Tenant's Union's lawsuit late last spring against a lawyer of Walsh's firm was in actual fact a conspiracy against the councillor and essentially "harassment."

"The Tenant's Union wants to gag my right to speak," said Walsh. "This is a bogus lawsuit and a deliberate attempt to bring me into it."

Walsh, who had complained last May to the City Manager Robert W. Healy about the "harassment," demanded that the council investigate the lawsuit since it involved city officials.

The council passed by a 5-0 vote an amendment calling for the limited investigation by Healy of the CTU charges and the submission of the information to the State Ethics Board. Walsh and Russell abstained.

The council also rejected by a 4-3 vote Walsh's proposed amendment calling for an investigation of the lawsuit against him. Walsh and Russell again abstained.

Walsh characterized the council's rejection of his amendment as "gutless," and as "one huge, large whitewash."

Walsh said that the council has consistently ignored allegations of impropriety that he has made. "Whenever I bring something up, it's covered," he said.

Walsh said he did not object to submission of the charges against him to the Ethics Board, but he said he wanted "everything on the table."

But Turk said that Walsh's charges were "smoke and mirrors" designed to divert attention from the real problem, Walsh's ethics violations. He called Walsh's charges "one more hallucination."