An investigator revealed on Thursday that a substantial donation to Florida’s only public historically Black university, which amounted to over $237 million given by entrepreneur Gregory Gerami, has been determined as invalid for several months. The third-party report highlighted that school officials failed to properly examine the donation, labeling it as a “fraudulent” contribution and stating that Gerami’s valuation of his hemp company was unfounded.
It was disclosed that Gerami breached the terms of his equity management account by transferring 15 million stock shares incorrectly. The law office of Buchanan Ingersoll & Rooney, PC stated that when Gerami’s contract with the company was terminated on May 14, any stock certificates in possession of the FAMU Foundation were nullified.
Furthermore, it was found that the foundation did not counter-sign the gift agreement after both parties signed an inaccurate version on the day of the graduation ceremony. The revelation came ten days after the donation was publicized at the university’s graduation event.
Following the public outcry and subsequent pause of the donation, repercussions included the university losing out on millions designated for scholarships, athletic facilities, the nursing school, and a student business incubator. This turn of events led to damaged reputation and the loss of contributions from previous donors who believed additional gifts were no longer necessary due to the anticipated financial boost to the university.
Administrators’ lack of due diligence in pursuing the gift was attributed to their eagerness to secure the transformative donation and their misunderstanding of private stock donations. President Larry Robinson’s repeated instruction to staffers “not to mess this up” was highlighted in the investigation. Multiple warning signs were allegedly ignored, including a message from financial firm Raymond James questioning the accuracy of Gerami’s assets, information regarding a previous failed donation, and an ethics hotline tip suggesting Gerami’s fraudulent activities.
The investigation concluded that senior leadership at the university were deceived by Gerami and allowed themselves to be misled. The report also stated that Gerami’s company did not possess the necessary resources to fulfill the promises made in the Gift Agreement.
The incident has caused significant turmoil within the university administration, leading to the resignation of President Larry Robinson and the departure of a vice president. The full completion of the donation remains uncertain as Gerami did not immediately respond to requests for comments on the matter.
