>> 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.
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.
Shares are down 45% since Laplanche's resignation.