Quick Index
 Adult Industry News
Search AINews Database
Type Keyword or Phrase Here
Advertise with AINews Pornography feminists unshackle their desires and celebrate their sexuality in the patriarchal world

Front Page
Film News
Media News
Business News
Clubs & Appearances
Law & Politics
Internet & Mobile News
Lifestyles Arts Health Charity
Letters to the Editor
Movie Spotlight Reviews
Pornstar Pages
AINews Staff
Ad Rates
PR 101: Press Release Service

Porn for GEEKS! Meet me & my friends!

Join Tera Patrick

March 29, 2001 04:37pm
Court Overturns Insider Conviction
Source: AP
by: Larry Neumeister

(NEW YORK, NY) -- An appeals court on Thursday overturned the conviction of a former top Wall Street executive alleged to have given inside information on bank stocks to an X-rated movie actress.

The 2nd U.S. Circuit Court of Appeals (news - web sites) in Manhattan ordered a new trial for James McDermott Jr., finding insufficient evidence to convict him of conspiracy but sufficient evidence for other charges.

McDermott, 49, of Briarcliff Manor, N.Y., was sentenced to eight months in prison after a jury concluded the married executive had given inside information to porn star Kathryn Gannon during an affair. He was released from prison in the middle of serving his term on Feb. 14 after arguments before the appeals court made it seem possible the conviction would be overturned, said his lawyer, Robert Anello.

``Mr. McDermott, who has maintained his innocence through these proceedings, as well as his family, has been through an agonizing ordeal,'' Anello said. ``He's gratified by this appellate court decision, which reinforces his confidence in the judicial system.''

Marvin Smilon, a spokesman for U.S. Attorney Mary Jo White, said: ``We are reviewing the opinion.''

Until May 1999, McDermott was president and chief executive officer of Keefe Bruyette & Woods, a New York-based investment bank specializing in mergers and acquisitions in the banking industry.

Gannon, 32, known in the adult film industry as Marylin Star, allegedly passed tips from McDermott to another lover, businessman Anthony Pomponio, 46, of North Caldwell, N.J.

The appeals court concluded McDermott, who began an affair with Gannon in 1996, could not be held liable for insider trades made by Pomponio. Pomponio and Gannon allegedly made $170,000 in illegal profits.

``We decline to hold as a matter of law that a cheating heart must foresee a cheating heart,'' a three-judge panel wrote.

From the start, the case had attracted attention because of Gannon's profession and because McDermott, a $4 million-a-year executive, had achieved fame from appearances on television investment programs.

To limit prejudice, Judge Kimba Wood let lawyers say only that Gannon worked as a dancer, model and actress under the stage name Marylin Star. She also let prosecutors show that Pomponio believed she ``knew a clientele of lawyers, stockbrokers, and such, high-level people'' and that she got her stock trading tips from a ``client'' or a ``boyfriend client.''

The appeals court said the judge went too far in allowing references to Gannon's ``clients,'' saying any rational juror would be likely to speculate that she worked as a prostitute or paid escort.

The appeals court also concluded that McDermott was unfairly prejudiced because he was tried alongside Pomponio, who was sentenced last year to one year and nine months in prison.

At his sentencing, McDermott apologized and said he was misunderstood.

``I was called a stud stock picker, a master of the universe,'' McDermott said. ``Those things couldn't be further from the truth. I'm just an average person who tried to work hard and give back.''

Gannon was arrested last year at her Vancouver, British Columbia, residence and is free on $50,000 bail. She also has a home in Miami.

Extradition proceedings are under way to bring Gannon to the United States.

Gannon starred in more than 60 X-rated movies, including ``Babe Watch 3,'' ``Coming of Age,'' ``Eye Candy,'' ``Passion Potion'' and ``S.M.U.T. 6.''

Advertise with AINews


2018 Gentlemen’s Club EXPO and Adult Nightclub & Exotic Dancer Awards Show

Top Stories

Scarlett Mae: Making Sex Feel Natural

MWA: 11/08/18

HardArt's Sexual Harassment Trailer

MWA: 11/07/18

HardArt Announces Sexual Harassment

Love in the Digital Age ~ Reviewer Rated

Being a Pornstar

Sexual Harassment Trailer

HardArt Lauches Website

OneStone Hub

E11EVEN, Nova Win at ED Expo

HardArt Rejects Director Sally Forth

MWA: 08/19/18

Stokely Cherry OTM

August Taylor MILF PoY Nom

Phoenix Divina Hooking

ED Expo Opening Party

Vickie Jay on VNALive

HardArt 3 Pic Deal

Iron Girls 6

Carmen Valentina NightMoves Nom

Dillion Harper at Expose

Texas, Monroe, Valentien to SEXPO

The Puppeteer

Urban X Voting Open

Brooklyn Chase in Madison

HardArt's Hypersexuals a Success!

TES Affiliate Conference

Jessica Johnson Hooking

MWA: 07/27/18

Vote Olive Glass, NightMoves

Attn: Club Owners, Managers, Staff, Entertainers

2018 Inked Awards

Hard Art's Hypersexual

MWA: 07/25/18

Johnson Hosts Urban X

Dee Wallace at Horrorfest

MWA: 07/19/18 - XRCO

AirBnB Discriminates Against Sara Jay

Hard Art Shoots First

MWA: 07/21/18

Holly Hendrix at Exxxotica

Karen Fisher at Exxxotica

Carmen Valentina at Exxxotica

DomCon Registration Opens

Luna Star at Exxxotica

Elvira Receives Price Award

BSF Media Welcomes Sabrina Deep

MWA: 07/18/18

Jenevieve Hexxx Site Launch

Sex Expo NY 2018

MWA: 07/16/18

MWA: 07/15/18

Bush 7

Hard Art Signs Director

Pulse Inks Hard Art

MWA: 06/28/18

New Studio: Hard Art

XRCO Changes Venue

The Roast of April O'Neil

McCullough, Rai on Inside

Morgan, Foxxx CoHo XRCO

Big Ass Rubdown ~ Reviewer Rated

MWA: 05/03/18

MWA: 04/29/18

MWA: 04/28/18

Natasha Nice Free Agent

Holly Hendrix Self Booking

CDC: Undetectable HIV

2018 XRCO Nominees


Natasha Nice Gangbang

Amateur Introductions 26

Sex Expo NY 2018

2018 XRCO Awards Announced

Anal Violation of Bonnie Grey ~ Reviewer Rated

Eros, a Short Film

Lee Signs Victoria June

Maxine X Voted #1

Czernich Releases Heavy Rubber 37

Legal Panel: Weinstein, #MeToo

Consent Checklist

Nice Girls Swallow 10

Paradise Wins Best Condom

Paradise, Astroglide StorErotica Nom

Paradise Marketing New Website

Dennis Paradise Inducted

Stories From

Law & Politics

APAG Investigates Abuse

Prop 60, Part One

Prop 60, Part Two

Official APAG Statement

Darling Running for Assembly

Possible Identity Theft

Bunny Ranch Special

Prop 60 Defeated

Tarts for Trump

Darcy Tyler Jailed

Weiner Offered Media Director

Julia Ann Against Prop 60

Pedophile Olympic Coaches Exposed

Law & Politics Section Index

Alice Polls Her Clients

What Prop 60 Really Is

IEAU Statement on Prop 60

FLOTUS Shatters Porn Search Records

Debbie Wasserman Schultz Offered $50K

Cruz Receives Porn Offer

Performers File Unpaid Wage Claims

Candidate Sex Tape Scandal

Donald Trump Porn Parody

Sex with Donald Trump

Hof Runs for Senate

Hookers for Hillary

Adult's Achilles Heel

AHF's Hidden Agenda

Pistol, Ross Talk Condoms

Modern Comstockery

Hof on Phoenix Hooker Bust

Cal/OSHA vs Evil Angel

Pornstar Graduates Law School

AHF Against AB 999

CraigsErotica Letter to Senators

Amazon Crushes Small Business

Letter of Equality

ASACP Service Recognition Award

Suit Filed Challenging Measure B

ASACP Ready For Internext

Octomom Loses Civil Suit


Crakmedia ASACP Corporate Sponsor

Mo Reese Statement

CAM4 Newest ASACP Sponsor

Takedown Piracy Removes 10,000,000

Three Stooges Porn Controversy

Suing: Wasn't Sexy Enough

Lords of Acid Censored

Nate Glass on CNBC

Copyright © 1998 - 2018 Adult Industry News (AINews.com)
All materials constituting text, articles, press releases, stories, columns, photographs, graphics, and code on the AINews.com domain are protected by copyright, and either owned by Adult Industry News (AINews.com), or reproduced with permission from other copyright owners. It may be downloaded and printed for personal reference, but not otherwise copied, altered in any way, or transmitted to others, without the written permission of Adult Industry News (AINews.com).