Florida A&M halts potential $237.75 million donation amid concerns over legitimacy.
"Yesterday, a move was made to halt this event - let's call it a break if you will - until some more info comes to light," shared Florida A&M University (FAMU) President Larry Robinson during an unexpected educational board meeting that took place after media outlets and college leaders raised doubts about the authenticity of a generous donation.
The change of heart came as a surprise given the excitement generated by the announcement at FAMU's commencement ceremony just a few days before. The news of Gregory Gerami, the 30-year-old boss of a Texas hydroponic hemp farm company Batterson Farms Corp., gifting $237.75 million worth of stocks to the university sensationalized headlines and was hailed as one of the largest personal donations to any historically Black institution.
At the graduation ceremony, Gerami handed over an extra-large ceremonial check to members of the university's administration, including Robinson, who described the gift as "incredibly selfless and far-reaching" in a press release that day.
But this jubilant mood was short-lived.
A Politico article revealed that Batterson Farms Corp. is a fairly small company, and the private shares are highly unlikely to have a teeming worth of hundreds of millions of dollars.
In the past, a similar donation from an anonymous donor - later identified as Gerami - never saw the light of day. Coastal Carolina University excitedly announced a $95 million donation by an anonymous donor, but when the deal fell apart a few months later, an article by the Myrtle Beach Sun News linked Gerami to the donation, citing claims he accused the university's officials of racism - an allegation they denied.
During an emergency meeting of the board of trustees and foundation members, there were a flood of queries and frustrations over the lack of transparency in the school's vetting process for Gerami's donation.
Gibbons, an FAMU Foundation Board of Directors member, shared his amazement that so few people knew anything about this monumental donation.
"Because from what I understand, none of us had any idea that this was even a thing," Gibbons told CNN. "We're talking about a life-changing, all-time-greatest donation for the HBCUs: a massive check on stage, with press coverage involved and a PR push after. If nothing else, this just highlights the need for us to clean up our own house."
Gibbons is pushing for an independent investigation into the process.
"I hope it's an awesome gift; it could be transformative for the school and much needed. But we should scrutinize the process."
Board Chair Kristin Harper expressed her worries in a statement to CNN, saying, "There are serious concerns regarding the genuineness of the gift, the adequacy of the due diligence processes, and whether our foundation board and board of trustees were given ample opportunities to oversee the situation."
"I regret sharing these concerns," Harper added.
On May 5th, only one day after the startling announcement at the ceremony, FAMU released a statement via X (ex-Twitter) asserting that they had done their vetting. The declaration mentioned Gerami had switched $237,750,000 of company shares into a FAMU account a month ago.
Vice President for University Advancement Shawnta Friday-Stroud spoke at a special emergency meeting and announced that a wealth screening had been carried out previously as well as an expanded background check for Gerami.
"We engaged in a discussion with Dr. Robinson, which has been made public. We made a decision to go ahead," Friday-Stroud said.
Terry Arnold, a FAMU Foundation Board member weighed in, saying, "My worry is that our reputation has taken a huge hit and I want to ensure that we restore the confidence of our alumni and everyone who supports Florida A&M University."
When reached by CNN, Gerami avoided immediate comment but referred the questions to the university, and planned to respond on the following day, but could not be reached.
The Special Board of Trustees, which directs the activities of the entire school and the foundation, have scheduled a gathering on May 15th to deliberate over the gift.
FAMU's communications team didn't reply to CNN's request for more details about the gift and the procedure behind it.
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The halt in the potential donation has caused uncertainty within the business community, with many questioning the legitimacy of the donation and the university's vetting process for such large gifts.
Moving forward, the University and its Foundation board will need to establish more stringent business practices to ensure transparency and avoid similar situations in the future.
Source: edition.cnn.com
