largest yet in a renewed effort by the Justice Department ...to root out fraud that puts average investors at a disadvantage in the stock market

Guilty Pleas Expected in Big Insider Trading Case | By Carrie Johnson | Washington Post Staff Writer | Tuesday, May 8, 2007; Page D01

A former Morgan Stanley executive responsible for making sure that employees obey the law is preparing to plead guilty this week for her role in one of the largest Wall Street insider-trading rings in more than two decades, according to court papers.

Randi E. Collotta and her husband, Christopher, are scheduled to appear before U.S. District Judge Victor Marrero in New York on Thursday. The negotiations between the Collottas and federal prosecutors in the Southern District of New York became public yesterday upon the release of correspondence from a government lawyer.

Assistant U.S. Attorney Andrew L. Fish asked the judge to delay a prior court session because "the parties are very close to completing plea negotiations."

"The Government anticipates that both defendants will be ready to enter guilty pleas on May 10, 2007," Fish wrote.

The case is the largest yet in a renewed effort by the Justice Department and the Securities and Exchange Commission to root out fraud that puts average investors at a disadvantage in the stock market. ...