At LendingClub, the cover up may have been worse than the crime.
The online lender's board ousted CEO Renaud Laplanche on Monday because he wasn't fully cooperative and transparent during an internal investigation of a loan sale, according to sources familiar with the situation.
Laplanche actually called for the initial probe after discovering that the application date on $3 million worth of loans was wrong, these sources told CNBC. They asked not to be named because the matter is confidential.
He brought in the company's auditor, who then decided an outside firm needed to investigate the company's loans more thoroughly.