What’s New
Florida A&M University’s president on Wednesday apologized that a planned $237-million gift to the university had to be put on “pause” after numerous red flags came to light about its little-known donor.
The donation fell apart after increased scrutiny, as it appears the donor, Gregory Gerami, may have overstated the value of the company stock that he planned to give the university in lieu of cash.
FAMU’s big achievement, which was unveiled during a commencement ceremony and billed as one of the largest donations to a historically Black college or university, quickly turned into a social-media embarrassment.
The Details
The apology from Larry Robinson, the president, took place during a special meeting of the university’s trustees. He said he took “full responsibility” for the failed vetting process, and the resulting harm to the university’s reputation.
Trustees were critical of the gift, and they requested the hiring of an outside legal firm that will investigate what happened, from the beginning of Gerami’s talks with the university until the deal ultimately imploded.
“This should not have happened,” said Deveron Gibbons, a university trustee. “And in light of that, we need to get the facts.”
The purported donation was nearly double the size of Florida A&M’s endowment and would have supported athletics and student-success initiatives, including a resource center for students with disabilities, but it proved too good to be true. “I saw in this unprecedented gift the potential to serve our students,” Robinson said. “I wanted it to be real, and ignored the warning signs along the way.”
According to the Tallahassee Democrat, there were numerous red flags surrounding Gerami, the purported donor.
For one, the newspaper found that “the woman Gerami identified as the Co-CEO of Batterson Farms never drew a paycheck or worked for him.” Batterson Farms is Gerami’s company, and it describes itself as a “hydroponic farming and hemp plastic company.”
Gerami previously withdrew a $95-million pledge to Coastal Carolina University in 2020.
Roughly a half-dozen Florida A&M employees orchestrated the donation negotiations, and subsequent announcement of the “gift.” Neither the university’s Board of Trustees nor its foundation were notified of the donation prior to it being publicly announced at the commencement ceremony.
The board chair, Kristin Harper, cried tears of joy at the news of the gift, and she posed for a photo op.
At Wednesday’s board meeting, Harper, who proposed the outside independent investigation, lamented that she had been used as “a prop.”
“I accept your apology, Mr. President,” Harper said. “Because I should have never been put on the spot … for a gift I knew nothing about.”
The Backdrop
Florida A&M University has enjoyed an upward trajectory in recent years, with record fund raising and a top ranking among the nation’s HBCUs.
Being deceived by a prospective donor who was also allowed to deliver a commencement speech has hit staff, students, and alumni hard.
One trustee, John Crossman, said that his own credibility suffered when he proudly promoted news of the donation-that-wasn’t.
“Because it came from the university, I trusted it to be 100-percent accurate,” Crossman said.
The Stakes
Now that the trustees have called for an outside investigation, there is the possibility that university policies could be changed to prevent a similar scenario in the future.
The scandal has already affected staffing at the university. The vice president for university advancement, Shawnta Friday-Stroud, has resigned from that role. She will remain employed at the university as dean of the business school.
