Former executive, porn star indicted

THE ASSOCIATED PRESS

NEW YORK -- A former top Wall Street executive will plead innocent to allegations he engaged in insider trading with an X-rated movie star with whom he was allegedly intimately involved, his lawyer says.

An indictment was returned Thursday against James McDermott Jr., the former chief executive officer at Keefe, Bruyette & Woods, and Kathryn Gannon, known as "Marylin Star" in the adult film industry.

A third defendant, Anthony P. Pomponio, also was charged.

All three were charged with conspiracy and securities fraud. Prosecutors allege the trio made more than $170,000 in illegal profits.

Denis McInerney, a lawyer for McDermott, said his client will plead innocent and "we look forward to the opportunity to address these allegations in court."

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