Current:Home > StocksInvestigator says ‘fraudulent’ gift to Florida’s only public historically Black university is void -WealthConverge Strategies
Investigator says ‘fraudulent’ gift to Florida’s only public historically Black university is void
View
Date:2025-04-24 16:28:12
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! (4731)
Related
- Friday the 13th luck? 13 past Mega Millions jackpot wins in December. See top 10 lottery prizes
- Trump’s ‘Energy Dominance’ Push Ignores Some Important Realities
- That ’70s Show Alum Danny Masterson Found Guilty of Rape
- Trump heard in audio clip describing highly confidential, secret documents
- Have Dry, Sensitive Skin? You Need To Add These Gentle Skincare Products to Your Routine
- Senate 2020: The Loeffler-Warnock Senate Runoff in Georgia Offers Extreme Contrasts on Climate
- In Maine, Many Voters Defied the Polls and Split Their Tickets
- This Tarte Mascara Is Like a Push-Up Bra for Your Lashes: Don't Miss a 2 for the Price of 1 Deal
- Newly elected West Virginia lawmaker arrested and accused of making terroristic threats
- American Climate Video: The Driftwood Inn Had an ‘Old Florida’ Feel, Until it Was Gone
Ranking
- The Best Stocking Stuffers Under $25
- Lala Kent Slams Tom Sandoval Over That Vanderpump Rules Reunion Comment About Her Daughter
- Gender-affirming care for trans youth: Separating medical facts from misinformation
- Get 5 Lipsticks for the Price 1: Clinique Black Honey, Charlotte Tilbury Pillow Talk, YSL, and More
- Opinion: Gianni Infantino, FIFA sell souls and 2034 World Cup for Saudi Arabia's billions
- American Climate Video: A Pastor Taught His Church to See a Blessing in the Devastation of Hurricane Michael
- Jenna Dewan Pens Sweet Message to Her and Channing Tatum's Fierce Daughter Everly on 10th Birthday
- Armie Hammer Not Charged With Sexual Assault After LAPD Investigation
Recommendation
Working Well: When holidays present rude customers, taking breaks and the high road preserve peace
Why Chrishell Stause Isn't Wearing Wedding Ring After Marrying G-Flip
An Unlikely Alliance of Farm and Environmental Groups Takes on Climate Change
California’s New Cap-and-Trade Plan Heads for a Vote—with Tradeoffs
New Zealand official reverses visa refusal for US conservative influencer Candace Owens
In Hurricane Florence’s Path: Giant Toxic Coal Ash Piles
Navajo Nation Approves First Tribal ‘Green Jobs’ Legislation
Chicago has the worst air quality in the world due to Canadian wildfire smoke