What company do you work for? I'd like to steer clear of it in the future.
It's one thing to say "I don't care about credentials". It's another thing entirely to say "I don't care about dishonesty".
And in this case, the lie is pointless. Nobody cares if Thompson has a CS degree, so why lie about it? It's a poor reflection of character imo, and I wouldn't work for someone I don't trust.
Lying about your credentials is really low and kept the more experienced person from getting the job. You may be happy with the liar's output, but you don't know how much you're screwing yourself (and their future employers) in the end by allowing that type of behavior to be rewarded.
You might be okay with that, but there are enough people with character and integrity out there that I am not okay with it.
I realize that a college degree is different (I personally love college and find it quite useful), and college can be beneficial, I think the value that society places on a degree is so absurd that I feel for those who may he compelled to lie. I may note that I have not encountered such a person yet.