Renaud Laplanche, the chief executive and chairman on Lending Club, resigned after an internal review found violations in sales practices.
According to the LA Times, $22 million in near-prime loans to an investor in March and April violated the investor’s instructions “as to a non-credit and non-pricing element,” the peer-to-peer loan company said in a statement.
“While the financial impact of this $22 million in loan sales was minor, a violation of the company’s business practices along with a lack of full disclosure during the review was unacceptable to the board,” Executive Chairman Hans Morris said in the statement.
Laplanche resigned on May 6, and Lending Club announced the resignation Monday.
More Must-Reads from TIME
- Introducing the 2024 TIME100 Next
- The Reinvention of J.D. Vance
- How to Survive Election Season Without Losing Your Mind
- Welcome to the Golden Age of Scams
- Did the Pandemic Break Our Brains?
- The Many Lives of Jack Antonoff
- 33 True Crime Documentaries That Shaped the Genre
- Why Gut Health Issues Are More Common in Women
Write to Tessa Berenson Rogers at tessa.Rogers@time.com