McDermott Gets 8-Month Prison Sentence

James McDermott Jr., a former top Wall Street executive who gave inside information on bank stocks to an X-rated-movie actress, was sentenced to eight months in prison. McDermott, 49, at his sentencing apologized to his wife and two daughters. His voice had become a fixture on TV financial programs when he was chief executive of the New York investment bank Keefe, Bruyette & Woods. McDermott lost his job after he gave inside information to Kathryn Gannon, a Canadian woman known as “Marylin Star” in the X-rated-movie industry. Gannon, 31, allegedly shared some information with Anthony Pomponio, 45, of North Caldwell, N.J., who was convicted of insider trading after acknowledging his own affair with Gannon. Gannon and Pomponio allegedly made $170,000 in illegal profit. McDermott was fined $25,000 and ordered to perform 300 hours of community service. Gannon was arrested in May in Vancouver, Canada, and is free on $50,000 bail. Extradition proceedings are underway to bring her to the United States.