FIRST AIRED: May 18, 2016

Nice work! Enjoy the show!

×

You’re busy. We get it.

Stay on top of the news with our Editor’s Picks newsletter.

US Edition
Intl. Edition
Unsubscribe at any time. One click, it’s gone.

Thanks for signing up!

We've got more news

Get our editor’s daily email summary of what’s going on in the world.

US Edition
Intl. Edition
Replay Program

Business

Lending Club under Justice Dept. probe

Opening sequence

Opening sequence

Business

Lending Club under Justice Dept. probe

0:00
16:53
More Info

COMING UP:Lending Club under Justice Dept. probe

×

Transcript

00:00:02
>> Another big blow for a company already reeling from a fraud scandal. The Justice Department launching an investigation into LendingClub. The company revealing in an FCC filing Monday, that it had received a federal grand jury subpoena on May 9th. That's the same day LendingClub CEO, Renaud Laplanche, was forced out after an internal probe found the company had fabricated about $3 million worth of loan applications.
00:00:28
The filing also showing that Laplanche and the CFO had used some of their company's shares to secure personal loans. A number of large investors have already halted investments in the company in the wake of the CEO's resignation. The San Fransisco based firm is the largest peer to peer lender in the US by volume.
00:00:46
Shares are down 45% since Laplanche's resignation.