The Stanford Graduate School of Business has revoked the diploma of a man found guilty of insider trading, becoming the first such institution to go to those lengths to protect its reputation from an unscrupulous graduate.
Mathew Martoma, a trader with SAC Capital Advisers LP, was found guilty last month of insider trading. In response, Stanford revoked its offer of admission to Martoma, effectively nullifying his degree.
The 2003 Stanford B-school graduate could face decades in prison for his crimes, The Wall Street Journal reports.
Anyone looking for warning signs that Martoma was not the most ethical young budding financier might have seen a big, glaring red flag from his school days: Before he applied to Stanford, Martoma was expelled from Harvard Law School for falsifying grades on his transcript.