By Tessa Berenson
May 9, 2016

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.

Write to Tessa Berenson at tessa.berenson@time.com.

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