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Chron - p*rn star gets 3 months in prison for insider trading

Discussion in 'BBS Hangout' started by oomp, Oct 24, 2002.

  1. oomp

    oomp Member

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    http://www.chron.com/cs/CDA/story.hts/business/1630805

    Oct. 24, 2002, 12:40PM

    Ambitious p*rn star gets 3 months
    She hopes insider trading sentence helps upcoming movie
    Reuters News Service
    NEW YORK -- The p*rn-star mistress of a former investment bank chairman was sentenced Wednesday to three months in prison for trading on inside stock tips he gave her and sharing the information with another lover.

    Calling herself a "tough chick" and an "adventuresome Aries" Kathryn Gannon, 33, told reporters that while she was surprised she got prison time, the sentence would only help promote a movie being made about her life.

    "There's no fear here. I'm from Canada, and I can handle it," Gannon said.

    "I gotta go. I have a cocktail waiting for me."

    Gannon, who is known in the adult film industry as Marylin Starr, had pleaded guilty in June to two conspiracy counts relating to the illegal use of inside information she got from James McDermott Jr., former head of Keefe, Bruyette & Woods.

    Prosecutors said she earned about $80,000 in illegal profits from the trades.

    Gannon remains free on a $300,000 personal recognizance bond secured by $5,000 in cash, which had been posted previously. Gannon, who has given up her passport, cannot travel outside New York State and must surrender to federal authorities in Manhattan on Dec. 2. No decision has been made yet about where she will serve her term.

    After the hearing, she said she had spent $500,000 on her legal defense and is broke.

    Gannon was charged with McDermott in the high-profile 1999 insider trading case along with Anthony Pomponio, another lover with whom she shared the tips. Gannon fled to Vancouver before she could be arrested in the United States for her role in the scheme that lasted between May 1997 and the summer of 1998.

    Gannon admitted during her plea hearing that she had received the inside information from McDermott, with whom she had a "romantic relationship." She said McDermott had told her to keep the information secret but that she had shared it with Pomponio. Prosecutors said Pomponio earned $86,000 from his trades.

    "I told everybody about the information. I had no secrets," she told reporters Wednesday. She said McDermott had given her the tips so she could save money to get out of the abusive pornographic film industry.

    Although McDermott had been convicted of insider trading, the verdict was dismissed when an appeals court said McDermott was unfairly convicted of being involved in a conspiracy that included Gannon's other lover, whom he did not know.

    Prosecutors said they planned to retry McDermott, but last year he agreed to plead guilty to one count of securities fraud for tipping Gannon. He was sentenced to five months in prison that he has already served.

    McDermott was president in 1997 of Keefe, Bruyette, an investment bank specializing in bank mergers. He was chairman and chief executive from Jan. 1, 1998, until he left in 1999.


    When a reporter asked Gannon if she got jail time instead of probation because of the widespread publicity over the ImClone insider trading scandal that threatens Martha Stewart, Gannon replied:

    "Ms. Martha Stewart. You little prude. Your snobby attitude is going to be frowned on by the world. Welcome to the real world. Your career is going downhill."
     
  2. MadMax

    MadMax Member

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    she puts the "in" in insider trading.

    did i just say that?
     
  3. Buck Turgidson

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    "I gotta go. I have a cocktail waiting for me."

    I bet she does.
     
  4. rimrocker

    rimrocker Member

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    What was she trading "inside her?"
     
  5. RunninRaven

    RunninRaven Member
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    She'll be very popular in prison.
     
  6. rocks_fan

    rocks_fan Rookie

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    "I gotta go. I have a cocktail waiting for me."

    Well she's half right. And she's sure she can "handle it" (another bad pun waiting to happen) because she's CANADIAN? Okay then. I'm sure her, ahem, 'talents' will be put to good use with her cellmate, Bertha Faye Widebody. To paraphrase Deliverance, "You sure do got a purty mouth."

    *hopes he doesn't get banned or given a firm slap on the wrists*
     
  7. JBIIRockets

    JBIIRockets Member

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    she is going to want more lesbian scenes when she gets out.
     
  8. Harrisment

    Harrisment Member

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    cocktail fruit
     
  9. Nomar

    Nomar Member

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    Never heard of her. So that means she's not a famous p*rn start if you know what I mean. ;)
     
  10. JuanValdez

    JuanValdez Member

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    I worked on this case -- actually the McDermott case -- when I worked for a litigation consultant. It was one of our more entertaining jobs. I'm disappointed to see he only got 5 months after all that. If I remember, we were on his side, but I didn't much care for him.
     

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