Defendant Name: LendingClub Asset Management, LLC

Defendant Type: Subsidiary of Public Company
Public Company Parent: LendingClub Corporation
SIC Code: 6153
CUSIP: 52603A10

Initial Case Details

Legal Case Name In the Matter of Lendingclub Asset Management, LLC, f/k/a LC Advisors, LLC, Renaud Laplanche, and Carrie Dolan
First Document Date 28-Sep-2018
Initial Filing Format Administrative Action
File Number 3-18855
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Other
• Section 206(1) Advisers Act
Additionally, Renaud Laplanche is alleged to have caused LendingClub Asset Management, LLC's violation of Section 206(4), Rule 206(4)-7 Advisers Act (willfully/knowingly).
Carrie Dolan is alleged to have caused LendingClub Asset Management, LLC's violation of Section 206(4), Rule 206(4)-7 Advisers Act (willfully/knowingly).

Resolutions

First Resolution Date 28-Sep-2018
Headline Total Penalty and Disgorgement $4,000,000

Related Documents:

IA-5054 28-Sep-2018 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 203(e), 203(f), and 203(k) of the Investment Advisers Act of 1940 and Section 9(b) of the Investment Company Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On September 28, 2018, the SEC issued an order against LendingClub Asset Management, LLC, stating: "From approximately December 2015 through April 2016 (the "relevant period"), LCA, through its president, Renaud Laplanche, caused one of the private funds it managed, the Broad Based Consumer Credit (Q) Fund ("BBFQ"), to purchase interests in certain loans that were at risk of expiring unfunded on the LendingClub platform (which would have deprive LendingClub of revenue it could otherwise earn)."
2018-223 28-Sep-2018 Press Release--Administrative Proceeding
SEC Charges LendingClub Asset Management and Former Executives With Misleading Investors and Breaching Fiduciary Duty
The Commission stated that: "The Securities and Exchange Commission today charged San Francisco based LendingClub Asset Management LLC (formerly known as LendingClub Advisors LLC) and its former president Renaud Laplanche with fraud for improperly using fund money to benefit LendingClub Corporation, LCA’s parent company that Laplanche founded and for which he served as CEO. LCA and Laplanche along with Carrie Dolan, LCA’s former CFO, also were charged with improperly adjusting fund returns."

Other Defendants in Action:

Renaud Laplanche
Carrie Dolan