Quick Index
 Adult Industry News
Search AINews Database
Type Keyword or Phrase Here
EXPO 2015, August 23-26, New Orleans

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

Caliente Nudist Vacations!

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.''

Casey Cumz 03

See BiBi Jones at Digital Playground

Top Stories

RAW Signs Sasha Bradshaw

Modern Comstockery

Nikki Phoenix Appearance

Rock’N’SeXXXy Welcomes Billy Blair

Karaoke XXX Needs New Location

Jane & Ward Hosting XRCO

SashaBrabuster's XXX Comeback

Control ~ Reviewer Rated

XRCO 2015 Nominees

A Leaner Message

MWA: 02/26/15

50 Shades of Grey ~ Cinema Seen

XRCO 2015 Hall of Fame

Interview with Ela Darling

Derrick Pierce Interview

The News Rack: Naked Swingers

MWA: 02/07/15

Interview of Holly Heart

ED Expo to Big Easy

Hof on Phoenix Hooker Bust

I Know You

Cal/OSHA vs Evil Angel

Layla Price at Foxxx Booth

Star.XXX Blasts Off

Puma Swede on Jukeboxx Live

MWA: 01/11/15

MWA: 01/19/15

Nikki Phoenix Party

Viva Las Vicki

Freedom Acres Open House

Kendra Lust in Detroit

MWA: 01/10/15

MWA: 01/03/15

Starr Sisters in Houston

MWA: 01/02/15

MWA: 01/01/15

Nikki Phoenix Update

MWA: 10th Anniversary Column

MWA: 12/30/14

Vegas Heat Party

MWA: 12/27/14

XBIZ Rooftop Party

MWA: 12/26/14

Welcome 2015!

Canadian Foot Porn

Actress as an Artist

MWA: 12/14/14

Pushed Into the Corner

Tod Hunter Press Releases

Global Adult Industry Association

Pornography Feminism

Merry XXXmas, Happy Xanukkah

Rock'N'Sexxxy 12/10/2014

MWA: 12/05/14

Karlie Montana Interview

Deep Vision ThunderRama

Hackin Jack vs Chainsaw Chick

BBW Eliza Allure Interview

MWA: 11/20/14

Tara Lynn Foxx Retires

Treacherous ~ Reviewer Rated

Bright Lights, Lonely Nights

Taormino Speaks at Goucher

Cumisha Amado at Sagebrush

Vivid Radio 1st Anniversary

The Gardener ~ Reviewer Rated

BoodiGo: Privacy & Porn

Shades of Scarlet ~ Reviewer Rated

AINews: Skow Among Best

Heaven & Hell Halloween Party

These Things We Do ~ Reviewer Rated

Farrah Abraham at Hustler Hollywood

Sex Workshop Hustler San Diego

Halloween Art Show

O Awards Pre-Noms Open

Trophy Girl Casting Call

Cum in Me Baby 4 ~ Reviewer Rated

More Phoenix Mainstream

BoodiGo Partners PornGuardian

BoodiGo Supports ASACP

BoodiGo Blocks Child Porn

Boodigo Adult Search Engine

AVN Show Discounts End Today

Inside The Industry 10/08/2014

Amber Lynn at Wasteland

Nikki's Fit as Phoenix

Vivid Extends Patrick Hosting

Fake Test Results

Angelyne on Amber Lynn's RNSU

Red Cardinal Wraps Betrothed

Siri Wins Round 2

J.Lo Doc Johnson Offer

Stripclub Microbrewery on CNN

Father's Day ~ Reviewer Rated

Our Father ~ Reviewer Rated

Nikki Phoenix Album Released

Passport to Hustler Event

Fox News Wasteland

Asianmodelpalooza 14

Nikki Phoenix Appearances

Nikki Phoenix Karaoke XXX

Nina Elle Retains Star Factory

Tasha Reign Grads UCLA

Tera Patrick Hosts Vivid Radio

It's Just Work

Traci Bryant Goes Legal

CET Free Panel Month

Miss LA Karaoke XXX

Freedom Acres Location

Summer Lovers

Nikki Delano at Centerfolds

Karen Summer Returns

Advertise on AINews

Cytherea Auctions Fan Scene

Entertainment is Entertainment is Entertainment

Stories From

Law & Politics

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

Mo Reese FSC Nom

Amber Lynn Seeks FSC Board

Suit Against Measure B

Law Puts Con in Condom

No on B: Here's Why

NO on B Campaign

NO on B Bus Tour

GFY: Vote No on B

Margold on Erection Election

Alex Chance in Documentary

Yahshua: No On B

No On 35 Rally

Why No On B

Measure B Threatens Freedom

Measure B Protest Video

No On B Raffle

Alia Janine: No On B

AHF Vilifies Porn

No on B Event

Alia Janine Against Measure B

Fight Measure B

Takedown Piracy Removes 10,000,000

John Stagliano Keynotes CatalystCon

Hirsch Blasts Trueman

Hirsch Cautions GOP

LATATA Files Injunction

Child Porn Hotline Increased

Vette Scores on AFF

Nicole Houde Assault Arrest

YouJizz Sued

Dickinson Defends Travolta

Kardashian/Humphries Divorce Deposition

Three Stooges Porn Controversy

Suing: Wasn't Sexy Enough

Lords of Acid Censored

Nate Glass on CNBC

Law & Politics Section Index

Copyright © 1998 - 2015 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).