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
Columns
Movie Spotlight Reviews
Interviews
Pornstar Pages
AINews Staff
Ad Rates
PR 101: Press Release Service

Caliente Swinger Vacations!

Club Jessica Jaymes - Official Website

August 03, 2000 03:00pm
Ex-Investment Bank Head Jailed for Insider Trading
Source: Reuters
by: Mary Kelleher

(NEW YORK, NY) -- James McDermott Jr., the former head of investment bank Keefe, Bruyette & Woods, on Thursday was sentenced to eight months in prison for passing on inside tips about merger deals to his porn star mistress Marilyn Star.

McDermott, 49, is the first head of a U.S. investment bank to be convicted of and sentenced to jail for insider trading.

Federal Judge Kimba Wood also fined McDermott $25,000 and ordered him to perform 300 hours of community service after he was convicted in April of conspiracy and fraud for insider trading.

Prosecutors had charged him with giving his X-rated movie star girlfriend, Kathryn Gannon, 31, confidential information about regional bank takeover deals.

``Insider trading undermines investor confidence in the integrity of the stock market,'' Wood told a packed Manhattan federal court, saying McDermott was ``keenly aware of the prohibitions against it.''

McDermott wore a dark suit and was silent and composed throughout the sentencing. Before his sentence was read, he publicly apologized to his two teenage daughters and his wife, who has stood by him through the ordeal.

``They are fantastic people -- bright, loyal...Some of the things I was not,'' McDermott told the court of his family, in even, clear tones. ``It is my wife's attempt to keep us together that has allowed us to continue to be together as a family.''

McDermott, Gannon, and Anthony Pomponio, 45, a New Jersey businessman with whom Gannon was involved, were indicted in January for an alleged two-year insider trading scheme. Prosecutors alleged Gannon passed McDermott's trading tips on to Pomponio and the two reaped more than $170,000 off them.

The sentence, which also includes a 2-year supervisory period, was not as harsh as it might have been.

McDermott -- who was not charged with making any money off the insider trading -- had faced a maximum of five years in prison on the conspiracy count and 10 years on each of the fraud charges, as well as much $5 million in fines.

The former banker, who lives in Briarcliff Manor, N.Y. and used alcoholism and depression as part of his defense, said he planned to dedicate the rest of his life to rebuilding his reputation and making a greater contribution to his family.

Before this case, McDermott was convicted of drunk driving two times in the past 10 years, although he has stopped drinking. Wood also ordered him to attend an alcoholism treatment program.

Calling himself an ordinary person, McDermott said, ''Throughout this trial I have been described as a stud stock-picker and a master of the universe. That couldn't be further from the truth.''

His lawyer, Denis McInerney, read excerpts from scores of letters to the court testifying to McDermott's character -- including ones from his wife, several priests, a regional bank CEO, the head of his high school, and an electrician.

``My client is extremely remorseful,'' McInerney told the court, in arguing for a light sentence. ``He has been publicly stripped of his job, his livelihood, his reputation and his dignity...This case has already sent a very loud message.''

McDermott's charitable donations and community involvement -- including work for the mentally handicapped and those with cystic fibrosis -- were also stressed, in an effort to mitigate his sentence.

But while Judge Wood lauded his charitable work as rare for someone in his high position, she said McDermott should go to jail in part to deter other would-be white collar criminals.

``A non-incarceration sentence would fail to reflect the seriousness of the offense,'' Wood said. ``The prospect of time in prison has a strong deterrent value for white collar crime.''

A common thread ran through both his drunk driving and insider trading convictions -- ``a recklessness that disregards the public interest,'' Wood said.

McDermott was president of Keefe, Bruyette, an investment bank specializing in bank deals, in 1997 and chairman and chief executive from Jan. 1, 1998 until he resigned last June. His job gave him access to market-sensitive information about takeover deals. He earned about $4 million a year.

Gannon, an X-rated film actress and exotic dancer with a pornographic Internet Web site, was arrested in Canada but freed on bail. Pomponio was convicted of securities fraud and perjury.

Are you TOUGH ENOUGH for Joanna Angel?


Casey Cumz 01

See BiBi Jones at Digital Playground

Top Stories

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

More
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

ASACP at XBIZ 360

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).