Lending Club (NYSE: LC), a San Francisco, California-based online lending marketplace connecting borrowers and investors, said that on May 6, 2016, the board of directors of the company accepted the resignation of Renaud Laplanche as Chairman and CEO.
The resignation followed an internal review of sales of $22 million in near-prime loans to a single investor, in contravention of the investor’s express instructions as to a non-credit and non-pricing element, in March and April 2016.
Scott Sanborn will continue in his role of President and will become acting CEO, assuming additional managerial responsibilities for the company. Mr. Sanborn will be supported by director Hans Morris, who has assumed the newly created role of Executive Chairman.
Commenting on the resignation, Mr. Morris said: “A key principle of the Company is maintaining the highest levels of trust with borrowers, investors, regulators, stockholders and employees. 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. Accordingly, the board took swift and decisive action, and authorized additional remedial steps to rectify these issues“.
About Scott Sanborn
As President, Scott has overseen the company’s product lines (personal loans, small business and patient and education financing) as well as marketing and product development. Prior to becoming President in April 2016, Sanborn was Lending Club’s Chief Marketing and Operating Officer with additional responsibility for managing our customer-facing operations. He originally joined Lending Club in May 2010.
Before joining Lending Club, Sanborn was the Chief Marketing and Revenue Officer for eHealth Insurance, a publicly traded ecommerce company, where he led marketing, product, sales and customer service to bring double digit growth in revenue and new customer acquisition.
Prior experience includes various senior marketing roles including President and Chief Marketing Officer of RedEnvelope, Inc., an e-commerce and catalog retailer of upscale gifts, and Senior Vice President of Marketing for the Home Shopping Network, a television and internet retailer of consumer products.
About Hans Morris
John C. (Hans) Morris joined Lending Club’s board of directors in February 2013. Mr. Morris founded Nyca Partners, a venture capital and advisory company, in 2014 and is the managing partner. From January 2010 until January 2014, he also served as a managing director and special advisor at General Atlantic, a growth equity firm. Mr. Morris previously served as the President of Visa, Inc. from 2007 to 2009. He previously spent 27 years at Citigroup and its predecessor companies in assorted leadership positions, with his final position as CFO and head of finance, technology and operations for Citi Markets and Banking. Mr. Morris also serves on the board of directors of KCG Holdings, Inc. and five privately held companies.