Current:Home > FinanceInvestigator says ‘fraudulent’ gift to Florida’s only public historically Black university is void -AssetVision
Investigator says ‘fraudulent’ gift to Florida’s only public historically Black university is void
View
Date:2025-04-16 01:23:05
A record multi-million dollar gift to Florida’s only public historically Black university has been void for months, an independent investigator said Thursday, as a third-party report determined school officials failed to vet a “fraudulent” contribution and that the donor’s self-valuation of his fledgling hemp company was “baseless.”
Little-known entrepreneur Gregory Gerami’s donation of more than $237 million was “invalidated” ten days after its big reveal at Florida A&M University’s graduation ceremony because of procedural missteps, investigator Michael McLaughlin told trustees.
Gerami violated his equity management account’s terms by improperly transferring 15 million stock shares in the first place, according to an Aug. 5 report by the law office of Buchanan Ingersoll & Rooney, PC. When the company terminated Gerami’s contract on May 14, McLaughlin said, any stock certificates in FAMU Foundation’s possession were cancelled.
What’s more, the foundation never countersigned the gift agreement after both parties signed an incorrect version on the day of commencement.
Thursday’s meeting came three months after that celebratory affair. The university president posed onstage with a jumbo check alongside Gerami, who was invited to speak despite a documented history of dubious business ventures and failed higher education giving.
Things soon fell apart. After almost immediate public outcry, the school paused the gift and a vice president left her position. President Larry Robinson submitted his resignation last month.
Gerami, who founded Batterson Farms Corp. in 2021, did not immediately respond to a call requesting comment. He has previously maintained to The Associated Press that the full donation would be completed.
Millions intended for scholarships, athletics facilities, the nursing school and a student business incubator will not be realized. In their place are reputational damage and halted contributions from previous donors who assumed the university’s financial windfall made additional gifts unnecessary, according to the report.
The investigation blames administrators’ lack of due diligence on their overzealous pursuit of such a transformative gift and flawed understanding of private stock donations. Robinson repeatedly told staffers “not to mess this up,” according to investigators. Ignored warning signs alleged by the report include:
1. An April 12 message from financial services company Raymond James revoking its previous verification of Gerami’s assets. In an email to two administrators, the firm’s vice president said that “we do not believe the pricing of certain securities was accurate.”
2. “Derogatory” information discovered by the communications director as he drafted Gerami’s commencement speech. That included a failed $95 million donation to Coastal Carolina University in 2020. The report said the official “chose to ignore these concerns and did not report them to anyone else, assuming that others were responsible for due diligence.”
3. An anonymous April 29 ethics hotline tip that the Texas Department of Agriculture could back up claims that Gerami is a fraud. The Office of Compliance and Ethics reviewed the tip but did not take action because the gift’s secrecy meant that the office was unaware of Gerami.
Senior leadership “were deceived by, and allowed themselves to be deceived by, the Donor — Mr. Gregory Gerami,” the report concluded.
“Neither Batterson Farms Corporation nor any of its affiliated companies had the resources available to meet the promises made in the Gift Agreement,” the authors wrote.
___
Associated Press coverage of philanthropy and nonprofits receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content. For all of AP’s philanthropy coverage, visit https://apnews.com/hub/philanthropy.
veryGood! (159)
Related
- The city of Chicago is ordered to pay nearly $80M for a police chase that killed a 10
- The Latest: The real test for Harris’ campaign begins in the presidential race against Trump
- 'Megalopolis' trailer sparks controversy with fabricated quotes from film critics
- Too early or not soon enough? Internet reacts to Starbucks dropping Pumpkin Spice Lattes Aug. 22
- Tree trimmer dead after getting caught in wood chipper at Florida town hall
- Archaeologists in Virginia unearth colonial-era garden with clues about its enslaved gardeners
- Tech Tycoon Mike Lynch Confirmed Dead After Body Recovered From Sunken Yacht
- Horoscopes Today, August 21, 2024
- South Korean president's party divided over defiant martial law speech
- College students are going viral on TikTok for luxury dorm room makeovers. You won't believe it.
Ranking
- Friday the 13th luck? 13 past Mega Millions jackpot wins in December. See top 10 lottery prizes
- Georgia man who accused NBA star Dwight Howard of sexual assault drops suit
- Body of British tech magnate Mike Lynch is recovered from wreckage of superyacht, coast guard says
- Southern Arizona man sought for alleged threats against Trump as candidate visits border
- Alex Murdaugh’s murder appeal cites biased clerk and prejudicial evidence
- Former Army financial counselor gets over 12 years for defrauding Gold Star families
- Weight loss drugs sold online offer cheaper alternative to Ozempic, Wegovy. Are they safe?
- Tom Brady and Bridget Moynahan's Son Jack Is His Dad's Mini-Me in New Photo
Recommendation
'Most Whopper
King Charles III Shares Rare Personal Update Amid Cancer Diagnosis
Canada’s 2 major freight railroads at a full stop; government officials scramble
Former Tennessee officer accused in Tyre Nichols’ death to change plea ahead of trial
'Survivor' 47 finale, part one recap: 2 players were sent home. Who's left in the game?
Video shows woman almost bitten by tiger at New Jersey zoo after she puts hand in enclosure
Who's performed at the DNC? Lil Jon, Patti LaBelle, Stevie Wonder, more hit the stage
Savannah Chrisley shares touching email to mom Julie Chrisley amid federal prison sentence