I have actually seen this happen at my school. The applicant claimed to be in the middle of a personal crisis & unable to start an internship -- he was released. Actually, he had already signed a contract under the table with another program -- the other program knew about his shenanigans, but he was academically outstanding. He was close to some of the attendings at that program, and the "old boy network" sort of just protected him.
I have mixed feelings about the above story. I don't like to see people behaving in an unethical manner. However, I do feel that if an applicant wants out, the programs should let him/her leave, and it should not be necessary to make up stories. To be sure, there should be some penalty (perhaps a very stiff 4-figure financial penalty to compensate the program in addition to sitting a year out).
Applicants were given the upper hand in the NRMP algorhythm because for years residency programs abused their privileged status. They lied to candidates about their potential rank list placement, tried to twist their arms into signing contracts on the spot, discriminated against female candidates, etc.
Residency programs STILL try to pull some of those same stunts. I can't even tell you how many times I was asked re. my marital status, whether I had children, how I was going to rank the program; I got phone calls from chief residents asking me to commit verbally to them; I would get calls from other programs saying they heard I was extremely interested in the other program, etc. Friends of mine got emails, phone calls, letters from programs that didn't even rank them high enough to match. Many of these activities are against NRMP regulations (hey, it's not just candidates that break the rules). I am GLAD, GLAD, GLAD
applicants finally have some leverage.
I followed the rules (and did not rank any places I didn't want to go to), and I was lucky -- my top choice for prelim and categorical (and I matched them both) never lied to me, led me on, asked discriminatory questions, or coerced me.
My friends all (except one) followed the rules -- and some of them were shafted in a big way. Tough break, huh?
Another one of my friends shafted a surgical program to attend a better one elsewhere; initially, I was disappointed she did this. On the other hand, we are talking about her life -- I am glad she will be somewhere she will be happy. As for the program she ditched, they'll find someone just as good and move on.
Just my thoughts
ana