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LendingClub's ex-CEO Barred by SEC Over Improper Loan Purchases

  • Laplanche failed to put investors interests first, agency says
  • Securities industry ban could be lifted after three years
Renaud Laplanche

Renaud Laplanche

Photographer: David Paul Morris/Bloomberg

Updated on

LendingClub Corp.’s former chief executive officer agreed to be banned from the securities industry for at least three years to resolve allegations that he misused investors’ money.

Renaud Laplanche, 47, will pay $200,000 to settle U.S. Securities and Exchange Commission claims that he directed an advisory fund to buy loans that were at risk of going unfunded, thereby depriving LendingClub of revenue, the agency said in a statement Friday. The investment adviser, LendingClub Asset Management, agreed to pay $4 million over the claims, and former Chief Financial Officer Carrie Dolan, 53, was fined $65,000. All agreed to resolve the claims without admitting or denying wrongdoing.