Stanford Takes Away An MBA Degree

Mathew Martoma apparently lied his way into Stanford's MBA program

Mathew Martoma apparently lied his way into Stanford’s MBA program

For the first time ever, Stanford University’s Graduate School of Business today (March 5) confirmed that a 2003 graduate of the most selective MBA program in the U.S. no longer has a degree because he was admitted under “false pretenses.”

The decision to nullify Mathew Martoma’s MBA, first disclosed earlier today by The Wall Street Journal, follows his conviction last month of insider trading charges. “Martoma does not have a Stanford MBA,” confirmed Stanford GSB spokesperson Barbara Buell.

The school ostensibly did not strip the former hedge fund trader at  SAC Capital Advisors of the degree because of his Feb. 6th conviction, but rather because he failed to disclose that he was thrown out of Harvard Law School for doctoring his grade transcript and sending the forged document to federal judges in search of a job.


Two years after being dismissed from Harvard, Martoma had changed his name and successfully applied to Stanford’s business school. But he apparently covered up the fact that he had been kicked out of Harvard. The decision by Stanford indicates that Marie Mookini, then director of MBA admissions at Stanford, did not know that the applicant was expelled. Mookini, now an MBA admissions consultant based in Palo Alto, declined comment.

“What makes this possible is not that he was a convicted felon, but that he was admitted under false pretenses,” a faculty member told the Journal.

Stanford sent Martoma a letter in February seeking an explanation about statements he made on his original MBA application and gave him a two-week deadline for a response, according to the newspaper. Martoma’s lawyers asked for a two-week extension which was granted by Stanford. When the new deadline ran out on Friday without a response, Stanford decided to pull Martoma’s degree.


Though Stanford has consistently declined direct comment on the Martoma case, citing privacy laws, the school does make clear that applicants who are admitted to its MBA program on false pretenses can have their degrees revoked. Most observers assume that Martoma, who legally changed his name from Ajai Mathew Thomas to Mathew Martoma when he applied to Stanford, failed to admit that he was thrown out of Harvard Law School for a disciplinary reason.

“Federal law (FERPA) prohibits Stanford from discussing the specific academic status of a former student,”  says spokesperson Buell. “However, we take very seriously any violation of the integrity of our admissions process. When there is evidence that any misrepresentation has been made, Stanford’s policy and practice is to review the matter carefully.  Determining the validity of the evidence is undertaken immediately, but can take time. When a review is completed, Stanford’s policy provides it can revoke an offer of acceptance and a degree, if it was found that an individual gained admission through false pretenses. “

All of this has come to light many years later because of Martoma’s New York trial on charges of insider trading. Though his ouster from Harvard was ruled inadmissible by the judge, the disclosure of the unsealed disciplinary report showed that he used computer software to improve some of his first-year law school grades from B’s to A’s. He then sent the forged transcript to nearly two dozen judges when he applied for federal clerkships.

What is all the more intriguing is the extent to which Martoma went to conceal his fraud—all of it revealed in excruciating detail in the court papers which includes the full report by a Harvard Administrative Board that recommended his expulsion from the school. A close reading of the board’s report provides a seldom seen glimpse into a disciplinary procedure at a top law school, but also how the board bent over backwards to be fair to someone who was so unethical.


Martoma, who graduated with a degree in biomedicine, ethics and public policy from Duke University in 1995, had entered Harvard Law School in 1997 and quickly racked up what the law school board would call “an excellent record” in his first year-and-a-half. Besides his solid grades, he was on the Board of Student Advisers, an editor of the Journal of Law and Technology and a semi-finalist in the school’s annual moot court competition. He co-founded the Society of Law and Ethics.

For whatever reason, however, the academic record Thomas had compiled just didn’t seem good enough—for him. At the half-way mark of his JD education, in December of 1998, Thomas altered the transcript of his first-year grades so that he received an A rather than a B in Civil Procedure, an A rather than a B+ in Contracts, and another A in Criminal Law instead of a B. He didn’t change his B+ grade in Torts, nor his A- in Negotiation.

The day before Christmas, Thomas showed the forged transcript to his mother, Lizzie Thomas, a doctor, and his father, Bobby Martoma, who owns residential and commercial properties in Florida. They were ecstatic. Several days later, according to a statement made to the Harvard board, Thomas “realized that what he had done was wrong and showed his parents his real grades.”

  • Baiters gonna bait.

    Congrats to everyone that replied to Halo and co. You have now learned what an internet troll looks like. Next step: learning not to feed the troll.

  • Sigh

    There seems to be a deep hole in your life that can only be filled by impotently trolling students of a specific nationality. I surmise you have been completely screwed over in life by one or many Indian males, and somehow you feel that if there were no Indians to compete with, you would be much better off in life. Let me tell you that its just not true. If you are losing at life right now, you always would regardless of external circumstances. I would urge you to reevaluate your life, and how you spend your time online.

    – maybe the only way you can lash out against your perceived emasculation by a certain demographic is by posting an absolutely retarded comment regarding an infraction committed by 1 person, and generalizing it to a billion.

    The level of stupidity in all your posts amuses me, and the fact that you spend so much of your time and energy doing this makes me weep.

  • Ash

    Mate, this guy is as American as an apple pie baked into the shape of a baseball and then fired out of a concealed handgun. He was born and raised here. Why do you have to bring country or race into the equation ? Would it be fair to say all African-Americans are thugs or that all jews are cunning scheming bankers ?

    You bring the level of discourse down by a few notches and frankly speaking, a well informed community like P&Q could well do without people who make such insinuations.

  • Sajid

    Wow, talk about making sweeping generalisations !! You encountered a few instances of cheating and saw it fit to apply it across the board – an entire country and race of people who happened to be one – sixth of humanity. It is like saying all Americans are war warmongering gun totting sex starved folks or that all arabs are terrorists !!

    How on earth did you even get into any business school ? Lastly, if you bothered to do your research, you would know that this guy is American and has never spent a day of his living life in India.

    Maybe you have something against Indians, maybe you dont but it is undeniable that your perceptions of Indians have been coloured by the experience you have had with a tiny sub-set of Indians. If you cannot see what is wrong in making such assumptions, the rest of the community will hopefully.

  • Rohit – Melbourne

    I hate to break it to you buddy but this guy was born and raised in the United States of America. He did his schooling in America and is a product of the American system. He is as American as apple pie unless of course you make an assumption that only people of Caucasian origin can lay claim to the ‘American” moniker.

    Would you make a similar claim regarding all the Silicon Valley entrepreneurs of indian origin too or are we making an exception just for this guy ?

    Sad to know that P&Q is quickly turning into a reddit forum !!

  • dksamuel

    In India changing grades is a common achievement, but in US of A it is an offence, Martoma must have checked his GPS

  • Sf Chick

    I know a guy from an Ivy League University who changed his transcript (India makes great fake University seals) and submitted his application to Harvard Business School). He was accepted and received his MBA at HBS. However, fast forward several years later and he is a suspect in ANOTHER insider trading case ( it has not yet been brought to trial). Yes, eventually this innate belief that “everyone does it” and you “will not get caught” will eventually catch up with you!

  • anonymous15

    Oh here comes a genius to talk about Indians. What do you base your opinion of “India is a sorry excuse for a country” on? How many years have you lived there? How many businesses have you directly dealt with? How many Indian friends do you have? My guess you probably experienced .5% of India my friend. Also, do not act like there is no poverty here in the United States. They are called slums in India and ghetto in the United States. I have been to some freaking ghettos in the United States and thought India was better. Also, saying you judge the entire country from their English (a language that is not their primary language) is a completely idiotic argument. That is like Indians judging you on Spanish, Hindi, German, or a number of languages that aren’t USA’s primary language but still an important language. You really just sound ignorant with your vague and stupid assumptions.

  • anonymous15

    Woah woah I’m surprised you noticed a vast mount of Indians (2nd largest population) cheating with your own eyes. You must have huge eyes that can view things across the ocean. Anyway, yes I agree the country is corrupt and people can pay their way into college (bribes) and get degrees. However, it can’t be assumed everyone is like that. Indians have motivation unlike any other culture. Pepsi CEO, Microsoft CEO, and vast number of PhD candidates writing books and educating future AMERICANS among other cultures are Indians who earned their ticket to higher education in the United States (not a easy thing to do at all when you are from a third world nation). And yea sure Indians make Russians look like child play…explains why foreign direct investment is skyrocketing in Russia and not India..wait, no it is not. It is skyrocketing in India and not in Russia. How does India attract foreign direct investment from all around the world with such a corrupt government and labor force? I personally know Indians who work 14 hours a day and 7 days a week at a mediocre information technology job..something most Americans would not do. Anyway, my whole point is because of this one guy above, do not assume you know all Indians sir. And yes I am from India, I was born there and moved to United States when I was nine years old. I am also a business undergraduate currently in graduate school and nope I did not cheat my way through.