Quimbee logo with url
From our private database of 14,500+ case briefs...

United States v. McDermott

United States Court of Appeals for the Second Circuit
245 F.3d 133 (2001)


James McDermott (defendant), president, CEO, and chairman of Keefe Bruyette & Woods (KWB), an investment bank headquartered in New York City, had an extramarital affair with Kathryn Gannon, an adult film star and alleged prostitute. During the course of the affair, McDermott made numerous stock recommendations to Gannon. Unbeknownst to McDermott, Gannon was also having an affair with Anthony Pomponio and passing the stock tips on to him. McDermott, Gannon, and Pomponio were each indicted for conspiracy to commit insider trading. McDermott and Pomponio were tried together. McDermott was found guilty of conspiracy to commit insider trading in violation of 18 U.S.C. § 371, despite a case built almost entirely on circumstantial evidence linking telephone conversations between McDermott and Gannon with the trading activity of Gannon and Pomponio. McDermott appealed.

Rule of Law


Holding and Reasoning (Oakes, Senior C.J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 263,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 14,500 briefs, keyed to 196 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.