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Porn star faces extradition
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March 1, 2000: 6:14 p.m. ET
U.S. authorities ask Canada to extradite Gannon on insider trading charges
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NEW YORK (CNNfn) - U.S. officials have formally asked the Canadian government to extradite porn star Kathryn Gannon -- the former girlfriend of former Keefe, Bruyette & Woods CEO James McDermott Jr. -- to the U.S to face insider-trading charges.
Gannon, a Canadian citizen, also known in the porn industry as Marylin Star, is believed to have fled to western Canada after being indicted last December, CNNfn has learned. A warrant was issued for her arrest after she failed to show up for a hearing in New York.
For the last two months, the U.S. Attorney's office had hoped to strike a deal with Gannon. Federal authorities allege that she profited illegally by buying stocks, making more than $88,000 based on inside tips on pending bank mergers given to her by McDermott, with whom she was allegedly having an affair.
McDermott, the former chairman and CEO of Keefe, Bruyette & Woods Inc., a Wall Street firm that specializes in the banking industry, was indicted last December on insider trading charges. Gannon is also accused of passing the insider information to a friend, Anthony P. Pomponio, whom federal authorities believe reaped a profit of at least $87,000.
The Securities and Exchange Commission has charged McDermott, Gannon and Pomponio with securities fraud and perjury. If convicted, all three could be liable for whatever profit they reaped, in addition to a penalty three times the sum of the profit.
McDermott and Pomponio are scheduled to stand trial March 31 before U.S. District Judge Kimba Wood in Manhattan. 
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