MBA News: Martoma’s Expulsion Raises Questions for Stanford

The Stanford Graduate School of Business (GSB) has thus far kept rather quiet after last week’s revelation that alumnus Mathew Martoma—who is facing criminal charges for his hand in the insider trading scandal surrounding SAC Capital Advisors—was expelled from Harvard Law School for applying to federal clerkships with falsified transcripts in 1999. Martoma received an MBA from the GSB in 2003, raising the question of whether the business school was aware of his prior academic infraction during the admissions process, which would have undoubtedly required Martoma to disclose such information.

DealBook confirmed with a spokeswoman from Stanford that Martoma enrolled in 2001, and points out that according to a different source close to the business school, “the expulsion of an applicant from another university, if it was disclosed on an application or otherwise known, would create a ‘serious impediment’ to a candidate’s admission.” It seems that in addition to charges of trading on inside information from a drug trial (which earned $276M in profits for SAC), Martoma could potentially face further retaliation from Stanford if he indeed omitted crucial information on his MBA application—conceivably even leading to the revocation of his degree.

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