Investigator says ‘fraudulent’ gift to Florida’s only historically black public university void

A record multimillion-dollar gift to Florida’s only historically black public university has been void for months, an independent investigator said Thursday, as a third-party report determined school officials failed to verify a contribution ” fraudulent’ and that the donor’s self-assessment. His hemp company was “groundless.”

Unknown entrepreneur Gregory Gerami’s more than $237 million donation was “invalidated” ten days after his big reveal at Florida A&M University’s graduation ceremony because of procedural missteps, investigator Michael McLaughlin told trustees.

Gerami violated the terms of his equity management account by improperly transferring 15 million shares in the first place, according to an Aug. 5 report from the law firm of Buchanan Ingersoll & Rooney, PC. When the company terminated Gerami’s contract on May 14, McLaughlin said, all stock certificates held by the FAMU Foundation were canceled.

In addition, the foundation never countersigned the gift agreement after both parties signed an incorrect version on the day of commencement.

Thursday’s meeting took place three months after that holiday affair. The university president posed on stage with a jumbo check alongside Gerami, who was invited to speak despite a documented history of shady dealings and higher education failure.

Things soon fell apart. After almost immediate public outcry, the school discontinued the gift and a vice president left his position. Chairman Larry Robinson tendered his resignation last month.

Gerami, who founded Batterson Farms Corp. in 2021, did not immediately return a call seeking comment. He previously claimed to The Associated Press that the full donation would be completed.

Millions earmarked for scholarships, athletic facilities, a nursing school and a student business incubator will not be realized. In their place are reputational damage and stopped contributions from previous donors who assumed the university’s financial gains made additional gifts unnecessary, according to the report.

The investigation blames trustees’ lack of diligence on their excessive pursuit of such a transformative gift and misunderstanding of private stock donations. Robinson repeatedly told employees “not to mess this up,” according to investigators. Ignored warning signs reported by the report include:

Senior management “were deceived by the donor – Mr. Gregory Gerami, and allowed themselves to be deceived by him,” the report concluded.

“Neither Batterson Farms Corporation nor any of its affiliated companies had the resources available to fulfill the promises made in the Gift Agreement,” the authors wrote.

The story continues

___

Associated Press coverage of philanthropy and nonprofits gets support through AP’s collaboration with The Conversation US, with funding from the Lilly Endowment Inc. AP is solely responsible for this content. For all of AP’s philanthropy coverage, visit https://apnews.com/hub/philanthropy.