Known in the porn world as Marylin Star, Kathryn Gannon and two former lovers, former banker James McDermott, Jr. and industrialist Anthony P. Pomponio, have been indicted formally on insider trading charges.
Gannon remains in seclusion in her native Canada with her current fiance, Michael Gillies. McDermott and Pomponio are free on bail since December.
The charges stem from a case in which McDermott, former Keefe, Bruyette & Woods chief executive officer, is alleged to have given Gannon information on pending bank mergers, based on which Gannon would then buy and sell stock - and pass the same information along to Pomponio. Gannon and Pomponio are alleged to have made over $80,000 apiece as a result.
Gannon has said from her seclusion that she'd like to tell the whole story of the sceme, in which she was mostly the innocent victim of rich, powerful, and vain men. During the recent Consumer Electronics Show in Las Vegas, her friend, Adult Press Service president Marc Medoff, told AVN On The Net that she was working on where and how to surrender in the case in order to tell that story.
Keefe, Bruyette & Woods was set to go public with an initial public offering last spring, but those plans were pulled abruptly in May - court papers say it was canceled after McDermott told company directors a friend, supposedly Gannon, was under Securities and Exchange Commission investigation for trading in stocks he'd recommended.
Neither McDermott nor Pomponio has commented since their original arrests and bail. In addition to securities fraud and conspiracy charges faced by McDermott and Gannon, Pomponio also faces a perjury charge.
