Florida A&M University recently faced controversy over an alleged fraudulent gift of $238 million. The university received this donation from Gregory Gerami, a Texas hemp farmer, during its commencement ceremony in May. The gift, initially met with praise, sparked concerns about its legitimacy and Gerami’s background.
Gerami claimed the donation was in the form of privately held stocks in his company, Batterson Farms Corp. An independent investigation later found Gerami’s valuation to be baseless. Consequently, Florida A&M’s board of trustees initiated an investigation into the deal, leading to the resignation of several university officials, including the president and the vice president for university advancement.
The law firm Buchanan Ingersoll & Roone released a report on August 5, criticizing the university’s failure to conduct due diligence before accepting the gift. The report recommended notifying Gerami that the donation was never legally executed and emphasized the need for independent audits of noncash gifts in the future.
Gerami’s credibility came into question as reports surfaced about his involvement in fraudulent activities and failed promises of large donations to other institutions. The investigation revealed that university officials neglected to thoroughly vet Gerami’s background and the legitimacy of his businesses.
The report highlighted a lack of communication and oversight within the university’s leadership, with key individuals failing to raise concerns or conduct proper due diligence. Furthermore, the report criticized officials for not obtaining an independent valuation of the gifted stock and for withholding crucial information from the university’s governing boards.
Overall, the controversy surrounding the fraudulent gift to Florida A&M University underscores the importance of transparency, due diligence, and accountability in handling significant donations. Moving forward, the university must implement stricter protocols for accepting gifts and ensure that proper oversight and communication mechanisms are in place to prevent similar incidents in the future.