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December 14, 2000 02:41pm
Businessman Gets Jail for Using Trade Tips From Porn Star
Source: Reuters

(NEW YORK, NY) -- A New Jersey businessman was sentenced to 21 months in prison on Thursday for stocks trading on inside tips he received from the porn star mistress of a former Keefe, Bruyette & Woods chief executive.

Anthony Pomponio, 45, of North Caldwell, New Jersey, had been convicted by a Manhattan federal jury of conspiracy, insider trading and perjury for providing false testimony to the U.S. Securities and Exchange Commission.

He had been tried along with James McDermott, the former Keefe, Bruyette chief executive and chairman. McDermott, who was convicted for passing the confidential information, was sentenced in August to eight months in prison.

McDermott, 49, was the first head of a U.S. investment bank to be convicted of and sentenced to jail for insider trading.

He was charged him with giving his X-rated movie star girlfriend, Kathryn Gannon aka Marilyn Starr, confidential information about regional bank takeover deals. Prosecutors said that Gannon was also involved with Pomponio and had shared the tips with him. Gannon, who also uses the name Marilyn Star, and Pomponio were charged with reaping more than $170,000 from their trades.

Extradition proceedings are currently underway in Canada to force Gannon's return to the United States to face trial for her role in the scheme.

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