Investigation Reveals Fraudulent Donation to Florida A&M University
A recent multi-million dollar donation to Florida’s only public historically Black university, Florida A&M University (FAMU), has been declared invalid following an extensive investigation. Entrepreneur Gregory Gerami’s donation was voided due to procedural missteps and questionable valuation of his company.
Procedural Missteps and Questionable Valuation
The law office of Buchanan Ingersoll & Rooney, PC, conducted a third-party investigation, revealing that Gerami’s donation of over $237 million was invalid. The investigation found breaches in his equity management account’s terms and improper transfer of stock shares. Additionally, the foundation failed to countersign the gift agreement, rendering it flawed.
Public Spectacle and Subsequent Investigation
The donation was initially announced during a public spectacle at FAMU’s graduation ceremony. However, the subsequent investigation uncovered serious discrepancies, leading to the pause of the gift and the resignation of the university president.
Questionable Valuation of Batterson Farms Corp
Gerami’s self-valuation of his company, Batterson Farms Corp, was brought into question. The report revealed contradictory figures, casting doubt on the legitimacy of the donation. The inflated valuation and improper stock transfer resulted in the loss of significant contributions intended for scholarships, athletics facilities, the nursing school, and a student business incubator.
University Administration’s Role
The investigative report attributed the failure to thoroughly vet the donation to the university administrators’ eagerness to secure a transformative contribution. A flawed understanding of private stock donations and ignored warning signs facilitated the deception by Gregory Gerami. The lack of due diligence on the part of university leadership played a significant role in the situation.
Impact on Florida A&M University
As a result, FAMU now faces reputational damage and a setback in contributions from previous donors. Many donors assumed the significant donation would alleviate the need for further financial support. The university must now work to rebuild trust and secure future contributions.
