That's not a logical basis for why they we're rejected. Being early is the goal. However, late applicants still matriculate. My roommate matriculated into a T20 despite submitting his application in late July. Granted, he was a great applicant which was why he got in. (Just to be clear, he isn't the rule. Apply early, maximize your chances.)
Whoever you spoke with that submitted at that time likely had other flaws in their application which is why they got rejected on top of being late. And interview season runs through March I believe?