Gregory Gerami still insists the value of his purported donation to Florida A&M University is worth an estimated $237 million.
Yet, there's mounting evidence the donation and donor are not what they seemed when the gift was hailed as the largest act of philanthropy in HBCU history.
On May 4, when he addressed the audience of graduates, their families, friends and alumni, he proclaimed to applause: "The money is in the bank." But it wasn't. Instead he transferred 14 million shares of stock of indeterminate value that could be worth $300 million or zero dollars, according to one FAMU Foundation board member.
Gerami, a little known Texas-based hemp producer and CEO of Batterson Farms Corp, presented himself as an innovator on the rise, who owned one of the few Black hemp farms in Texas.
But few industry insiders knew his name and his scant digital footprint and missing money trail led to near instant skepticism. Despite six months of interactions and conversations, FAMU blew past possible red flags , which might have led them to a former Alabama politician listed as Gerami's co-CEO , who told the Tallahassee Democrat she never received a dime from him.
Now, FAMU — the nation's top ranked historically Black public university — appears to have cut all public ties with Gerami, CEO of Batterson Farms Corp. At the May 15 special meeting by the FAMU Board of Trustees, President Larry Robinson apologized, saying the donation has been "ceased" though he did not explain what that meant. He admitted to missteps and "ignoring warning signs along the way" which has now led to the board's decision for a third-party investigation.
In an interview with the Tallahassee Democrat, Gerami said he didn't watch the special meeting, adding he was on vacation and trying his hand at pickleball and was unable to tune in.
As of May 16, Gerami said he hasn't received any formal communication from FAMU about its decision to cease all activity related to the donation, adding he hasn't been contacted by Robinson or anyone from FAMU leadership in nearly a week. And while he stands by his purported donation, he has not responded to requests from the Democrat to share any appraisal or valuation of the stock.
He said he was "aware of a few things," including Shawnta Friday-Stroud's sudden resignation as vice president for university advancement and executive director of the FAMU Foundation and that an interim director was named.
When asked if FAMU has rescinded the gift, he said, "I haven't heard that."
"I have not received information that they were going to pull from the gift (as of May 16)," said Gerami, who said he understands both FAMU Foundation board members and trustees want to see a third-party valuation of the private stock. "It's premature, and I can't speak for FAMU and I have no issues with FAMU ... My commitment still remains.
"The university and other folks and the media are doing things that are premature because we don't even have a valuation."
'For the Love of Money': How the donation went down
On May 4, during the spring graduation ceremony, FAMU believed it was making history with its megaphone announcement that it had received a historic donation from the Issac Batterson Family 7th Trust, to which Gerami is a family representative. The Al Lawson Multi-purpose Center erupted in raucous celebration as "For The Love Of Money" by the O'Jays piped through the speakers as the big check came out.
In days, jubilation turned to doubt, damage control and now the resignation of Friday-Stroud, one of Robinson's closest confidants in his leadership circle. Trust and transparency are at the root of concerns by several trustee members and foundation members.
Articles by the Democrat revealed several inconsistencies associated with Gerami, including accounts by former City Councilwoman Kimberly Abbott who said she was never paid to be co-CEO at Batterson Farms Corp despite the company website listing her in that role and his cryptic responses to basic questions about his company location, the number of employees at the company and what city he lives in.
FAMU administration said it was bound by a non-disclosure agreement imposed by Gerami and selected about half a dozen university officials to be involved with the details of the donation.
Robinson, who's been both celebrated and chided for his handling of university affairs throughout his tenure, walked back the momentous announcement and said it was premature. He also publicly apologized to FAMU Board of Trustees Chairwoman Kristin Harper, who skewered him for not informing her of the announcement prior to being asked to pose for the check presentation and sign off on the Gift Acceptance Agreement.
Gerami says he may participate in investigation
In a Thursday interview with Gerami, the Demcorat asked if he would participate in a third-party investigation surrounding the donation. Gerami responded "it depends on what's asked."
"We also understand that transparency is key to an extent," he said. "We also must protect our business and our proprietary information. So having a third party evaluate our business and determine the stock price, I think (that is) most important in this whole situation."
Gerami also said he was not asked to participate in the FAMU Foundation emergency meeting last week nor the FAMU Board of Trustees meeting.
"I know for a fact no one said, 'Mr. Gerami, we'd like you to be on this Zoom call to answer whatever questions from the board,'" he said. "No one's asked that."
If he had been on the call, Gerami said he believes his presence would have been well received by some and others would have attacked him.
"That comes with the situation, right?," he said. "You learn that people are going to think what they want to think, and they're going to say what they want to say."
Contact Economic Development Reporter TaMaryn Waters at tlwaters@tallahassee.com and follow @TaMarynWaters on X.
This article originally appeared on Tallahassee Democrat: FAMU donation scandal: Gregory Gerami stands by value of his stock
