Leniency Won For Couple in Trading Scheme

This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.

The New York Sun

A former Morgan Stanley & Co. employee and her husband, both lawyers, won leniency yesterday, receiving six months of home confinement in a major insider trading case that resulted in more than $600,000 in profits for others but only $9,000 for them for their tips.

U.S. District Judge Victor Marrero also ordered Randi Collotta, 30, to serve 60 days in the custody of federal prison authorities on nights and weekends so she can continue working a new job and keep health insurance coverage. The judge cited the severe illnesses of Mrs. Collotta’s husband, Christopher Collotta, 34, as a reason to sentence both of them to less than the prison terms they had agreed to serve without appeal when they entered guilty pleas in May to conspiracy and securities fraud. She had faced up to 18 months, he had faced up to 16 months. The Collottas, among 13 people criminally charged in the case, also were ordered to pay $3,000 fines.

When the case was announced in March, the Securities and Exchange Commission called it one of the most pervasive Wall Street insider trading rings since the days of Ivan Boesky and Dennis Levine in the mid-1980s.

Besides the lawyers, defendants including registered representatives, compliance personnel, and hedge fund portfolio managers improperly relied on hundreds of tips during five years of illegal trading, the government said.

Randi Collotta sobbed as she watched her husband get sentenced. She continued sobbing as she apologized.


The New York Sun

© 2025 The New York Sun Company, LLC. All rights reserved.

Use of this site constitutes acceptance of our Terms of Use and Privacy Policy. The material on this site is protected by copyright law and may not be reproduced, distributed, transmitted, cached or otherwise used.

The New York Sun

Sign in or  Create a free account

or
By continuing you agree to our Privacy Policy and Terms of Use