In a first of its kind action, the prestigious Stanford University has stripped Mathew Martoma, the convicted Indian-origin hedge fund portfolio manager, of the MBA that was awarded to him back in 2003.
A Manhattan federal jury had convicted 39-year-old Martoma last month of securities fraud by using confidential information that enabled the discredited SAC Capital to illegally earn $275 million. According to legal experts, Martoma could be facing seven to 10 years imprisonment.
The revocation of Martoma’s MBA by Stanford University’s School of Business follows revelations during the trial that he had been kicked out of Harvard law School for having falsified his school transcript while trying to gain a federal clerkship.
He subsequently secured admission to Sanford, where officials were reportedly unaware of his expulsion from Harvard. During federal investigations, it had turned out that Martoma, after the Harvard episode, had also changed his name from Ajai Mathew Thomas.
“We take very seriously any violation of the integrity of our admissions process,” Stanford spokeswoman Barbara Buelle told The
Wall Street Journal, which first reported the revocation decision.
Buelle declined to comment on Martoma’s record, citing privacy laws. She, however, confirmed that the school has provisions for revoking degrees or acceptance offers if a student is found to have gained admission through false pretenses.
In the wake of the revelations during the trial, Stanford sent Martoma a letter last month seeking explanation about statements on his application. He was given two weeks to respond and then, at his request, another two weeks that ended last Friday.
While the Stanford action is another stinging setback for Martoma, the man who successfully prosecuted him, Manhattan’s US Attorney Preet Bharara has been chosen for another honour. He has been invited by the Harvard law School to be the speaker at the school’s Class Day ceremonies in May, along with another distinguished person of Indian origin: Actress, comedian and writer Mindy Kaling, born Vera Mindy Chokalingam to a Tamil architect father and a Bengali gynaecologist mother.