Board will oversee investigation into failed $237 million FAMU donation

The Board of Directors of the State University System of Florida is investigating a questionable donation to Florida A&M University (FAMU).

The Historically Black College & University (HBCU) in Tallahassee accepted a $237 million donation from a man who claims to be a Texas hemp investor.

“My office will work with the outside law firm retained by the FAMU Board of Trustees to conduct the investigation,” the board’s inspector general, Julie Leftheris, said in a letter to FAMU President Larry Robinson on Friday.

The board has also hired Pittsburgh-based law firm Buchanan Ingersoll & Rooney to investigate the donation and to review and investigate the value of the shares. In the meantime, the university has been ordered to cut off communication with Gerami.

Who is Gregory Gerami?

Some officials believe Gregory Gerami is a fraud. He is the man who offered nearly a quarter of a billion dollars worth of Florida A&M stock for his private company, Batterson Farms Corp. in Texas.

Batterson Farms specializes in the cultivation of industrial hemp, and FAMU’s hemp research prompted Gerami to make this generous donation.

“The most important thing is to be able to choose a university where our legacy will live on and have the greatest possible impact for many generations to come,” Gerami said.

FAMU President Larry Robinson kept news of the gift secret for months, saying he was bound by a non-disclosure agreement (NDA) not to tell anyone until the deal was finalized. Then, during graduation, he announced the gift.

“This is a transformative gift for this institution,” Robinson said during a special board meeting on May 15. “We can’t tell you how much we appreciate it. And for the students, the message is that someone is always watching.”

Robinson hoped to use the money for student success programs and improving the aging athletic facilities on campus.

But this idea was short-lived.

Because the donation was made in the form of stock in Gerami’s private company, the school cannot simply convert it into cash. Additionally, FAMU would need permission from Gerami to sell the stock. It is also not clear whether the stock is actually worth as much as Gerami claims. FAMU has done its part to clarify what happened.

“What is our process for large donations?” asked Kristin Harper, chair of the university’s BOT, during a special trustee meeting. “Did this situation comply with policies, procedures, delegated authority and internal controls? How and by whom was the value of the donation determined?”

Gerami has no previous ties to FAMU. According to his company’s website, he founded Batterson Farms in 2017 and began focusing on farming in 2020. However, there is little information about his farming operation online.

In 2023, the Texas hemp investor tried to offer a $95 million donation to another school, but that fell through. Robinson said he overlooked Gerami’s past because he felt the school needed the money.

“I wanted it to be real and ignored the warning signs along the way,” he said. “There was no personal gain. But the impact on our students and our university would have been extraordinary.”

Amid the ongoing uproar over the donation, Shawnta Friday-Stroud, FAMU’s vice president for university advancement, resigned from her post but continues to hold other positions at the university.

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