Scandal in Mind, Fuqua Welcomes MBAs

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"It is a cultural issue, a very serious one. It is subtle and is capable of repetition without notice," Ekstrand said in an interview earlier this month. He declined to discuss details of the cases because, he said, the issue remained open.

Meanwhile, in a brief submitted to the school during the appeals process, provided to BusinessWeek by one of the disciplined students, Ekstrand asserted that the students may not have been given a fair trial by the school because of the manner in which the investigation was conducted, one that did not take into account the legal cultures the students came from.

Tripped Up by the U.S. Legal System?

According to the document, in the students' home countries, confessions are looked upon as a way to bring a person back into the larger group. The accused is expected to show remorse and his desire to be reintegrated. It's a philosophy that is "fundamentally different than that of the American legal culture," Ekstrand wrote. "When they were confronted with allegations of wrongdoing, they were predisposed to avoid even the appearance of a disagreement with the school's allegation. To these students, it would be illogical for them to admit violating the code, and then dispute the extent of the wrongdoing."

This worked against them during the initial judicial board hearings, Ekstrand wrote. Many of these students offered long and rambling confessions that expressed their remorse and repentance for their actions. Judicial board members may have misinterpreted the students' remorse, viewing their confessions through the lens of the American legal culture, Ekstrand argued.

Indeed, two of the students found guilty by the school, both of whom are Asian, spoke with BusinessWeek in Durham earlier this summer and agreed that cultural differences played a role in how they chose to answer the school's charges and defend themselves.

"Totally Changed Our Career"

One of the students received a one-year suspension, while the other was expelled. Both filed appeals that were turned down. They said they were unclear what evidence the school had against them when they were asked to issue a confession by the investigator assigned to the case. They also said they did not understand what it meant to have "the right to avoid self-incrimination," an option guaranteed to students in Fuqua's honor code.

The two students, who had established an e-mail address with the name "Fuqua Facts," asked that their names not be disclosed because they are hoping to return to Duke. They remained on the Duke campus after most of the other accused students had left, hoping to reverse the school's action, "I spent a lot of time during the hearing to say how I felt regretful and sorry about the charges. I didn't defend myself point by point," said one student from China, who received the suspension. "Now, I think this was a significant mistake."

The other student, a former financial-services worker from Beijing, who was expelled, added: "Even if we made a mistake, we just wanted to talk to the school. This has totally changed our career and lives."

But while the students and Ekstrand hold out hope that the incident will be reviewed, Duke business-school officials say they have no plans to reopen the issue. "For us, it is the end of the appeal process," Boulding said.

Damast is a reporter for BusinessWeek.com.