‘It Was a Frat House’: Inside the Sex Scandal That Toppled SoFi’s C.E.O. The company said its business was performing well, and that SoFi was becoming a “major, innovative player in consumer finance.” A SoFi spokesman said the company did not comment on personnel matters and disputed that its business had taken on too much risk. A SoFi spokesman said the company bought Mr. Cagney’s hedge fund partly because the board was concerned about Mr. Cagney’s ability to focus on both companies. Around the same time, SoFi’s board and executives also heard complaints from investors that Mr. Cagney had made misstatements to them over the start-up’s student loan products, according to emails between investors, executives and the board that were obtained by . The board said that it found “no allegation or evidence of a romantic or sexual relationship” between Mr. Cagney and Ms. Munoz and referred all other questions to SoFi. Another time, he told investors that SoFi had $90 million in debt financing for a loan product; the company did not in fact have the money, according to the internal emails reviewed by The Times. Around that time, SoFi’s board asked Mr. Cagney to not engage in inappropriate conduct with employees, according to two people with knowledge of the conversations.
