Singapore fintech founder silent on previous SEC probe

Singapore

OCTIFI'S press release late last month rolled easily off the list of accolades of its founder, Ed Chin. Veteran on Wall Street, specialist in trading distressed consumer and mortgage credit, and former managing director at Goldman Sachs.

But a simple online search showed that Mr Chin's time on Wall Street was in fact, cut short by the US regulator accusing him of misconduct in 2016. He was publicly known as Edwin Chin then.

What was not revealed by Singapore-based OctiFi, the buy-now-pay-later fintech started by Mr Chin in September, is that he was embroiled in an investigation by the US Securities and Exchange Commission (SEC), with Mr Chin fired from Goldman Sachs for his "regulatory records".

SEC said in a filing that Mr Chin had, from 2010 to 2012, misled Goldman customers when selling them residential mortgage-backed securities at inflated prices.

In some cases, the former head trader at the bank was found to have inaccurately said the bank was selling bonds at cost and that he would not be compensated for trades.

In 2016, Mr Chin agreed to a US$400,000 fine to settle civil charges that he misled the bank's customers. "Without admitting or denying the findings, Chin agreed to the entry of the order finding that he violated Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5," the SEC said. He was also barred from the securities industry for two years.

If he had wanted to return to Wall Street after that, he would have needed SEC's approval, the Wall Street Journal reported.

Prior to launching OctiFi in Singapore, Mr Chin was the chief data officer at New York-based renovation marketplace Sweeten from January 2018 to August 2019, his LinkedIn profile showed.

He was also a managing partner at co-living startup Roomunity from 2017 to January 2019.

Mr Chin now looks to start something new in Singapore with OctiFi, a fintech that wants to be "bridging the gap between financial responsibility and consumer demand".

The Business Times understands that Mr Chin now refers to himself as Ed Chin across all platforms.

When asked for comment, a press representation told BT that Mr Chin is unable to comment on any past Goldman Sachs dealings.

OcitiFi is tapping on a rising trend of interest-free installment platforms here. In its press statement, the startup wanted to show how zero-interest installment plans can "foster competent spending habits, especially for risk-averse Singaporeans".

Since its launch, its pay-later option has led to "34 per cent increase in average order value and a 20 per cent increase in sales conversion", it said.