Scandal in University Donation: The Gregory Gerami Case
Earlier this week, a research report revealed that the $237 million stock donation from Texas hemp producer Gregory Gerami to Florida A&M University simply was not worth it. The 176-page report labeled the gift as “fraudulent”, confirming suspicions that had been brewing for months.
The Investigation and Findings
The report pointed out that school officials failed to properly vet what appeared to be the largest donation to a historically black college or university. The donation debacle exposed a “fundamental misunderstanding of the complexities associated with private stock donations.” The law firm Rooney was hired to investigate the issue.
The Unraveling
As details emerged about Gerami’s previous donations and reports raised concerns about the true value of the stock donation, Florida A&M University suspended donations in May. This was a stark contrast to the highly publicized graduation ceremony where Gerami, the 30-year-old CEO of Batson Farms, Texas, was celebrated. However, doubts began to surface as it was revealed that Batson Farms was a relatively small company and unlikely to possess stock worth hundreds of millions of dollars.
The Fallout
The investigator, Michael McLaughlin, informed the trustees that the donation was “invalid” due to a procedural error just 10 days after a major announcement at the graduation ceremony. The mishandling of 15 million shares led to the termination of Gerami’s contract, resulting in the cancellation of all shares owned by the FAMU Foundation. The millions of dollars intended for scholarships, sports facilities, nursing schools, and student business incubators will not materialize. FAMU now faces reputational damage and potential decreases in donations from previous donors who may see additional donations as unnecessary.
In a twist, Gerami, the founder of Batson Farms in 2021, did not immediately respond to inquiries. Previously, he had insisted to The Associated Press that the full donation would be made.
In a previous 2020 agreement involving a donor later identified as Gerami, a similar failure occurred. Coastal Carolina University once claimed an anonymous donor had given $95 million, only for the donation to be withdrawn months later. The identity of Gerami was confirmed by the Myrtle Beach Sun, which also reported allegations of racial discrimination by CCU officials, which they deny.
