SEC Enforcement Division to Review LendingClub Disclosures
- LendingClub said to notify regulator of irregularities Sunday
- Board also uncovers failure to disclose interest in fund
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The enforcement unit of the U.S. Securities and Exchange Commission is reviewing LendingClub Corp. amid disclosures by the online lending company of abuses tied to loan sales and potential conflicts involving an outside investment fund, said people with knowledge of the matter.
The San Francisco-based company notified the SEC Sunday that it found the irregularities during an internal review, said the people who asked not to be named because the regulator’s examination isn’t public. LendingClub plunged 35 percent to $4.62 in New York trading Monday.