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May 25, 2000 08:46pm
Arrest Made in Insider Trading Case
Source: AP
by: Larry Neumeister

(NEW YORK, NY) -- An X-rated movie actress who allegedly got inside stock tips from the chief executive of a respected Wall Street company has been arrested in Canada.

Kathryn B. Gannon, known as ``Marylin Star'' in X-rated movies and publications, was arrested on insider trading charges Wednesday at her Vancouver, British Columbia, residence, according to U.S. Attorney Mary Jo White.

Gannon appeared in a Canadian court Thursday and was released on $50,000 bail.

Gannon, 31, had been a fugitive since she was charged in December along with James McDermott Jr., the former chief executive officer at Keefe, Bruyette & Woods, a firm that specialized in bank mergers.

McDermott was convicted last month of securities fraud for giving Gannon inside information, prompting her to allegedly buy six stocks illegally. She was accused of then giving the information to a third defendant, Anthony Pomponio, who also was convicted in the conspiracy. Both men were having extramarital affairs with Gannon at the time, lawyers in the case have said.

Pomponio and Gannon allegedly made $170,000 in illegal profits.

Howard Shapiro, Gannon's lawyer, did not immediately return a telephone message for comment.

He said after McDermott's conviction that the verdict did not mean his client is guilty of the conspiracy and securities fraud charges.

``Indeed, she is not and she intends to contest them vigorously,'' he said.

Pornography feminists unshackle their desires and celebrate their sexuality in the patriarchal world


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