Historic Donation at FAMU Under Scrutiny After Bank Withdraws Verification
Before Florida A&M University (FAMU) proudly announced a monumental $237 million donation, it received a concerning email from the donor’s bank which now casts doubts on the legitimacy of the historic gift. This revelation follows previous failed donation promises by the donor, bringing his credibility and the large sum under intense scrutiny.
Red Flags Raised by Bank Communication
Internal communications, now public, show that weeks before Gregory Gerami presented an oversized check at FAMU’s graduation ceremony, there was a stark warning issued by his bank. A senior vice president at Raymond James, Kirk Bell, cautioned FAMU officials against relying on previous assurances of Gerami’s account balances, stating serious discrepancies in the valuation of securities.
Lack of Transparency and Validation
The surprising gift, which would have been the largest ever made to a historically Black college or university (HBCV), was met with skepticism shortly after the announcement. Particularly, when it was revealed that Gerami was also behind a similar, unfulfilled pledge of $95 million to another institution in 2020. This pattern has led to the resignation of a high-ranking FAMU official and a public “pause” on the donation by the university’s president.
Questionable Valuations and Shifting Responsibilities
In his defense, Gerami mentioned that he had transferred 15 million shares of his hydroponic hemp farming company, valued internally at $15.85 per share, to the FAMU Foundation. Nevertheless, this valuation is yet to be verified by an independent third-party, a point that was also a bone of contention in the bank’s communications.
Warnings From Past Encounters
Further complicating the scenario are multiple warnings from individuals familiar with Gerami’s past donation attempts, expressing doubts about his financial stability and the authenticity of his pledges. Authorities and experts alike emphasize the critical need for rigorous due diligence when handling such significant financial donations to avoid potential fraud and financial loss.
Investigation and Possible Outcomes
FAMU, facing public and internal pressure, has initiated a comprehensive investigation to thoroughly vet the donation. Set to conclude by the end of August, this review aims to provide clear answers and determine the feasibility of accepting Gerami’s gift. Should the donation proceed without proper validation, FAMU risks not only financial loss but also substantial reputational damage.
The unfolding situation at FAMU serves as a cautionary tale highlighting the complexities of handling large-scale donations, the vital importance of transparency, and the far-reaching implications of due diligence.
