Investigator Finds Record Multi-Million Dollar Gift to FAMU Voided due to Fraudulent Contribution

Florida A&M University (FAMU) was left reeling after a record-breaking $237 million donation from entrepreneur Gregory Gerami was deemed invalid due to procedural missteps and a fraudulent contribution. An independent investigator revealed that Gerami had improperly transferred stock shares and provided a baseless valuation of his hemp company, Batterson Farms Corp.

The donation, announced at FAMU’s graduation ceremony, quickly unraveled as it was discovered that the gift agreement was never countersigned and the stock shares were cancelled when Gerami’s contract was terminated. The university president, Larry Robinson, who posed with Gerami and a jumbo check at the ceremony, resigned in the aftermath of the scandal.

Despite Gerami’s claims of obtaining a third-party valuation for his company, investigators found discrepancies in the valuation provided to the FAMU Foundation. Millions intended for scholarships, athletics facilities, and other university programs will now go unrealized, leading to reputational damage and halted contributions from previous donors.

The investigation highlighted warning signs that were ignored by administrators in their pursuit of the transformative gift, including a revoked verification of Gerami’s assets and derogatory information discovered by a communications director. The report concluded that senior leadership at FAMU had been deceived by Gerami and his company’s lack of resources to fulfill the promises made in the gift agreement.

The voided donation serves as a cautionary tale for universities and donors alike, emphasizing the importance of thorough due diligence and transparency in philanthropic contributions. FAMU now faces the challenge of rebuilding trust and securing future funding for its programs and initiatives.