Criminal Law Keyed to Kadish
United States v. McDermott
James J. McDermott (D) who was the president of a New York investment bank had an affair with an adult film star named Kathryn Gannon. During the time McDermott (D) was seeing Gannon, he used to recommend stocks to her. Unknown to McDermott (D), Gannon was also having an affair with another man named Anthony Pomponio. Anthony and Gannon made $170,000 during the period relevant to this case. Anthony, Gannon and McDermott (D) were charged by the Government with conspiracy to commit insider trading. However, evidence to prove that McDermott (D) had collaborated with Gannon to pass stock recommendation to anyone failed, but he was convicted on the conspiracy count. McDermott (D) appealed this ruling on the ground that the evidence on the conspiracy count was not sufficient.
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