Porn Star Pleads Guilty in Trading Case

Adult film star Kathryn Gannon pleaded guilty to federal charges that she traded stocks on confidential information leaked to her by former Keefe, Bruyette & Woods Inc. Chief Executive James McDermott.

McDermott, the first CEO of a Wall Street investment bank to be charged with insider trading, admitted last year that he tipped Gannon, his onetime mistress, to pending bank mergers. He was sentenced to five months in prison.

Gannon pleaded guilty to two conspiracy counts. She faces up to five years in prison on each count when she’s sentenced Sept. 20.