(NEW YORK, NY)) -- A former chairman and chief executive officer of financial investment firm Keefe, Bruyette & Woods has been charged with insider trading for giving tips about potential bank mergers to porno actress Marilyn Star, according to court papers made public on Tuesday.

James McDermott Jr., the former CEO who now works at investment bank Allen & Co., was charged with securities fraud and perjury in Manhattan federal court for giving non-public information to Kathryn Gannon, also known as Marylin Star.

Court papers describe Gannon, a Canadian citizen who has lived in Miami, as an actress and model specializing in adult films. The papers said that Gannon had an ``intimate relationship'' with McDermott.

The papers noted that Keefe, Bruyette provides financial services and advice to various banks in connection with potential and actual corporate mergers and acquisitions. As head of Keefe, Bruyette, McDermott had access to non-public information about the firm's clients.

The complaint also charges a third defendant, Anthony Pomponio, a self-employed New Jersey businessman, with allegedly trading on the tips. The papers allege that Pomponio also had a relationship with Gannon.

Both Gannon and Pomponio opened brokerage accounts at Charles Schwab in 1997 and began buying stocks of small regional banks. Some of the banks were on Keefe, Bruyette's confidential list of potential acquisition targets and others were about to make public announcements of merger transactions.