United States v. McDermott (2001)
United States Court of Appeals for the Second Circuit
245 F.3d 133 (2d Cir. 2001)
James McDermott (defendant), an investment bank executive, had an affair with adult film star Kathryn Gannon (defendant) and gave her numerous stock tips during the relationship. Unbeknownst to McDermott, Gannon was simultaneously having an affair with Anthony Pomponio (defendant) and passing McDermott's tips on to him for trading. The government charged McDermott, Gannon, and Pomponio with conspiracy to commit insider trading as well as the substantive insider-trading offense; the case against McDermott and Pomponio relied mainly on circumstantial evidence linking McDermott-Gannon phone calls to the trading activity of Gannon and Pomponio. McDermott was convicted on all counts and appealed.
Whether a conspiracy exists if there is no agreement to commit a crime between the defendant and at least one other person.