Quick Index
 Adult Industry News
Search AINews Database
Type Keyword or Phrase Here
Are you TOUGH ENOUGH for Joanna Angel? EXPO 2014, August 24-27, Mandalay Bay, Las Vegas

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 Swinger Vacations!

Join Tera Patrick

April 10, 2000 12:24pm
Affair drove CEO to steal inside information, US alleges
Source: Reuters
by: Gail Appleson

NEW YORK, NY) -- An extramarital affair with an attractive blonde dancer and model drove the former head of Keefe, Bruyette & Woods Inc. to steal sensitive inside merger information from his firm and tip off his mistress, a prosecutor alleged on Monday.

The lawyer told a federal jury that James McDermott Jr. had jeopardized his high-powered career as chief executive of a respected investment banking firm to reward his lover, but what the prosecutor could not reveal during opening statements is that the former paramour is an X-rated film actress and exotic dancer with a pornographic Internet web site.

U.S. District Judge Kimba Wood, who is presiding over the case in Manhattan federal court, previously ruled that such information could distract and possibly prejudice the jury. The government had unsuccesfully argued that the mistress' occupation could help prove that she would not have knowledge of confidential merger activity on her own.

The judge's decision left assistant U.S. Attorney Alex Oh with only the use of emphasis and pregnant pauses to try to get the point over to the jury.

``On the surface James McDermott appeared to be the master of his universe,'' Oh said explaining that institutional clients relied on his advice and that the CEO was often quoted in the news media as a financial expert. ``What was not visable...he was leading a dual life that hardly anyone knew about.''

Oh said that McDermott was having an extramarital affair with a ``28-year-old woman...a blonde attractive woman ...who was a dancer and model'' who performed under the stage name Marylin Star. ``It was this affair that caused James McDermott to breach his duty of confidentiality.''

McDermott Jr., 48, of Briarcliff Manor, N.Y., is charged with allegedly giving inside tips about six mergers involving regional banks to his mistress whose real name is Kathryn Gannon.

McDermott, Gannon and Anthony Pomponio, another man with whom the actress was involved, were indicted in January for their role in the alleged two-year insider trading scheme.

The charges are based on allegations that McDermott stole the confidential information from his firm and passed it to Gannon who in turn shared it with Pomponio. Prosecutors alleged Gannon and Pomponio made more than $170,000 in illegal profits based on the non-public information. McDermott is not charged with earning any profits from the illegal trading.

While McDermott and Pomponio are on trial, Gannon has so far refused to leave Canada, where she is currently living. The trial is expected to last at least two weeks and it remains unclear whether she will appear in court.

Oh alleged that before Gannon began receiving information from McDermott, she had no experience in stock trading. When she first opened a trading account in June 1997, Oh said that Gannon bought shares of obscure regional banks instead of well-known blue-chips.

She said that Pomponio also had no trading experience but followed similar trading patterns when he opened an account one month later.

McDermott's lawyer Scott Muller said while his client admits that he had ``an affair that humiliated him,'' and that he gave trading advice to Gannon, the evidence will show he did not give stolen, confidential information to her.

``The charges in this case are false,'' Muller said. ``He (McDermott) did not steal information from his firm.''

He said that the banks were not obscure, as described by the government, and instead were prominent area banks that had been the subject of merger speculation. In at least one case, Gannon bought stock after there was a public announcement.

Muller told the jury the questions before them will be ``What did he (McDermott) say and when did he say it.''

Muller also said that his client had no motive to break the law. He said that McDermott, who earned about $4 million a year, made no money on the trades. He also did not need to give Gannon illegal stock tips because he gave her gifts of cash on personal checks bearing his name.

``There was no effort to conceal...there were no dummy accounts,'' Muller said.

Are you TOUGH ENOUGH for Joanna Angel?

Casey Cumz 02

See BiBi Jones at Digital Playground

Top Stories

Nikki Phoenix Album Released

Father's Day ~ Reviewer Rated

Our Father ~ Reviewer Rated

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

Evil Pin-Ups Karaoke XXX

Monique Alexander in Houston

Reader Comments on Adult Industry

Tribute to Christian Mann

This week on RNSU

TTS Welcomes Bobi & Jen

Sheila Marie on Reality TV

Testing the Waters

Cutting Edge Changes Staff

MWA: 07/23/14

MWA: 07/22/14

MWA: 07/21/14

Tweets = Cash with PornPitch

Proud Parents ~ Reviewer Rated

RNSU July 17

Next Day Test in LV

MWA: 07/13/14

Condomless Sex

The Goddess Lives

A Legend Looks Back

Nikki Phoenix Hosts Palomino

RNSU Thurs July 10

Nikki Delano at Crazy Horse

Resurgence of the Goddess

Pornstar Graduates Law School

July 3 Rock-N-SeXXXy-Uncencored

More on Belle Knox

Morgan Del Ray Karaoke XXX

MWA: 05/21/14

The Temptation of Eve ~ Reviewer Rated

Cumisha Amado on Vivid Radio

Yoga for Lovers

She's Judas & Available

Nikki Delano on Jukeboxx

Lapdance Lingerie in Neighbors

XRCO Welcomes Rich Hansen

IIM Party June 13

Hustler EDM Maniac Party

Layla Price Stars

Julia Sands Karaoke XXX

Susana Molina in Baci Lingerie

Fetish Con Dates

Porn's Greatest Star

James Deen June Promo

Exxxotica Exhibitors Lining Up

AdultVerifiedVideoChat iPad Contest

Sunny Leone Hosts Splitsvilla

Porn Star Game Night

Camming Con Moves Dates

Discount Club Owners Expo Tickets

Teal Conrad at Sapphire NYC

Exquisite Distributes DDF

Cherie Deville Returns

Alana Evans at WonderCon

Risque Starr Sisters Parties

Natasha Voya PSK

The Sexual Liberation of Anna Lee ~ Reviewer Rated

Carter Cruise at Exxxotica

Belle Knox at Exxxotica

Rock'N'SeXXXy & Hustler

Puma Swede Opens Desire

Nikki Phoenix XRCO Nom

Maddy O'Reilly is Slutwoman

Alex Chance jGrrl

Tony Batman Conquers LA

Alexa Aimes NYC Tour

2014 AVN News Rack Part 2

Roxanne Rae Available

Minka Karaoke XXX

Rio Lee Heads Cherry Pimps

Immoral Mayhem

XRCO Sponsorship Opportunities

Rotten Hosting Vivid Radio

Cherie Deville Available

Tony Batman Crazy Appearances

Inside The Industry 03/19/2014

Chanel Preston Interview

Alicia Silver Productions Content

Adrianna Luna Dance Dates

Entertainment is Entertainment is Entertainment

Stories From

Law & Politics

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 - 2014 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).