The Federal Bureau of Investigation is conducting an ongoing investigation of the Cambridge Police Department, FBI officials confirmed yesterday.

The investigation was publicized last week when retired Police Chief Anthony Paolillo pled guilty to one count of falsifying loan documents.

Cambridge Police Commissioner Perry Anderson said he completely supports the investigation. "I want the department clean."

"They have carte blanche to do whatever necessary to help maintain the people's confidence in the police department," Anderson said.

Alice K. Wolf, a former mayor of Cambridge, also said she'll support the investigation.

"If there is any reason to believe everything in the police department isn't on the up and up I'm glad the FBI is investigating," Wolf said. "Saintliness in the police department is a great virtue."

Paolillo was charged in connection with a 1980s real estate deal involving embattled Cambridge City Councillor William H. Walsh.

Walsh was convicted by a federal jury last April of 41 counts of bank fraud. Walsh is also said to have lied to federal officials.

Walsh, who declined to comment yesterday, tried to defraud a branch of the Dime Savings Bank of New York.

He almost came away with $2.9 million after offering illegal second mortgages in an attempt to convince buyers to invest in his failing condominium project.

Paolillo was charged for buying a condominium from Walsh even though he knew the terms of his loan were illegal, the Cambridge Chronicle reported yesterday.

In exchange for his guilty plea, Paolillo will cooperate with the a FBI as it continues to investigate other Cambridge police connected with the deal.

Capt. Richard Bongiorno bought two units at a Taunton development from Walsh; Lt. James Hallice bought three; Officer Maureen Ford bought one; and Officer Frank T. Pasquarello bought two with his brother, the Chronicle reported.

"We cannot comment on it because it is an ongoing investigation," Pasquarello said yesterday. "We are not privy to it."

Anderson also confirmed that in addition to the fraudulent loans, the FBI is investigating ties between officers and illegal gambling, the Chronicle reported yesterday.