CNN is reporting that a former long-time MIT professor and associate dean of the Sloan School of Management, Gabriel Bitran, has pled guilty to scamming investors with a basically fake hedge fund. Bernie Madoff is even involved.
It seems like this kind of malfeasance occurs not infrequently among professors in prominent business schools. Professors stealing tens if not hundreds of millions of dollars from investors, particularly if they use their position as a professor to gain peoples’ trust, certainly looks bad for MIT. The fact that these are business professors, who should obviously know better, doesn’t exactly help improve the already dim reputation of business as an academic field.