April 27, 2000 11:16am
James McDermott Convicted of Tipping Off Porn Star in Inside Trade Case
(NEW YORK, NY) -- A federal jury convicted a former top Wall Street executive Thursday of giving inside information on bank stocks to an X-rated movie actress.
The jury of seven women and five men deliberated for less than two days before finding James McDermott guilty of conspiracy and five out of six counts of insider trading. The jury also found porn star Kathryn Gannon's other lover, Anthony Pomponio, a New Jersey businessman, guilty of the same charges plus a count of perjury for lying to investigators who began probing the case last year.
McDermott, former chief executive officer at Keefe, Bruyette & Woods, took a deep breath before the verdict was read but showed no emotion once it was delivered, holding his head high as the jury forewoman spoke.
McDermott, 48, of Briarcliff Manor, N.Y. and Anthony Pomponio, 45, of North Caldwell, N.J., had both admitted having extramarital affairs with Kathryn Gannon but had denied that they engaged in insider trading.
McDermott allegedly gave inside information to Gannon, a woman described to the jury only as an actress, dancer and model who sometimes goes by the stage name Marylin Star.
McDermott and Pomponio are charged with conspiracy and securities fraud.
Gannon, 30, and Pomponio allegedly made $170,000 in illegal profits. Gannon, who has a home in Miami, Fla., is a fugitive. Prosecutors have sought her extradition from Canada, where she is believed to be living.