SEC Settles With Institutional Fixed Income Trader on Charges of Misleading Clients – Chin

In August 2016, the SEC settled a “Litvak” type case with Edwin K. Chin, a former Goldman Sachs trader of residential mortgage-backed securities (“RMBS”).  The RMBS that he traded were relatively illiquid.  He was accused of both misleading customers about the ownership of the securities – in some cases, Goldman Sachs already owned the securities in its book, and he was accused of intimating to clients that he was still negotiating with a third party seller – and about the amount that he was making on the securities.  Administrative Proceeding File No. 3-17394.  Here is the link to their decision: