Zenefits Chief Executive resigns amidst 'shock' scandal

The HR cloud software company Zenefits’ CEO and Co-Founder Parker Conrad has left the company as US regulators put the firm under investigation.

Zenefits is under is under investigation for allowing salespeople to sell health insurance without the proper licenses, Business Insider reports.

David Sacks will take over as CEO. He was previously the COO at Zenefits, as well as the Co-Founder and CEO of Yammer. He has also been the CEO at Paypal.

VentureBeat has released an internal email in which Sacks discusses Conrad’s departure from the company. In it, he says: “By now all of you have heard the news that Parker has resigned as CEO. I know that this will come as a shock. Parker was not only the founder of this company but also its driving force until this day.