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Cheating scandal erupts at Kellogg graduate school

Six graduate students in a fellowship program at Northwestern University's Kellogg School of Management have been accused of cheating by their peers.

According to a report by business school news site Poets & Quants, the six male cheaters were observed exchanging exams, copying answers, and talking with one another during an accounting final as part of the school's MS in Management Studies program.

Poets & Quants reports that there was no proctor and the professor administering the exam was shuttling between tests in two rooms.

This isn't the first time this has happened. Students who spoke with Poets & Quants alleged that the cheating students were also grouped together in the back of the room during a statistics final prior to the accounting exam where again, there were no proctors.

These same students reported the cheating but accused the Kellogg School of assigning a biased student to conduct the student side of an honor code investigation, of failing to punish the cheating, and of allowing their names to be shared with the purported cheaters, which led to threatening phone calls from the cheating students.

The students who reported cheating said they also reported the threatening phone calls. However, they said the administration told them not to discuss the incidents with each other or the media because allegations of honor code violations are kept confidential at the Kellogg School.

Kellogg's honor code, which students are introduced to at orientation, obliges members of the business school to report all suspected violations to administrators. It also states that "any breach of confidentiality, other than as is required to complete an investigation or on a need-to-know basis" is a violation. Code violations can result in administration of failing grades or suspension of student privileges, up to expulsion from Kellogg and Northwestern.

In a statement emailed to CNBC, the Kellogg School said it has policies and procedures in place for dealing with such allegations.

While the school could not comment on any specific matters pertaining to the application of the honor code, it's statement read, "We are committed to the highest levels of integrity, professionalism, and respect for others, both inside and outside the classroom ... our Honor Code is designed to achieve fair, thoughtful, unbiased outcomes that reinforce our commitment to both academic integrity and professional behavior."

Read Poets & Quants' full report here.