FAMU Deals With Ugly Aftermath After Discovering $238 Million ‘Gift’ Was a Hoax
TALLAHASSEE, FL — On Wednesday (May 15), Florida A&M University (FAMU) President Larry Robinson apologized for a seemingly fraudulent $237 million donation. Shawnta Friday-Stroud—Florida A&M University’s vice president for University Advancement and executive director of the FAMU Foundation—has resigned from her vice president role amid the controversy surrounding the dubious donation that has rocked the campus and its alumni.
FAMU President Larry Robinson publicly announced her resignation during a virtual Board of Trustees special meeting Wednesday afternoon that was scheduled to discuss the multi-million-dollar, 10-year gift. She will, however, remain dean of the university’s School of Business & Industry.
Gregory Gerami and the Isaac Batterson Family 7th Trust donated “14 million shares of stock of intrinsic value worth at least $239,000,000,” according to the gift agreement. The document, obtained by Tallahassee-based WCTV, notes an additional $61 million would be donated over the span of 10 years. Aside from the money, the agreement states that the donor “will receive a plaque at the Will Packer Performing Arts Amphitheater for each Endowed Scholarship Fund that reaches $100,000 in cash.”
The good news was shared on May 4 during the graduation ceremony and immediately received national praise. However, that was quickly eclipsed by a mountain of skepticism from FAMU alumni and others.
Robinson revealed that, ultimately, the gift transaction had “ceased” just days after stating the historic donation was placed on hold. Now, the university’s trustees are investigating the questionable transaction.
According to officials and news reports, Friday-Stroud and six FAMU officials decided to accept Gerami’s donation without informing other vital school stakeholders, including members of the FAMU Foundation Board of Directors and the Board of Trustees.
Gerami founded Batterson Farms Corp, a hydroponic farming and hemp company based in San Antonio, Texas. The company’s website indicates Gerami founded Batterson Southeast Capital Group in 2017 and began focusing on farming later in 2020.
That same year, Gerami pledged to donate $95 million anonymously in 2020 to Coastal Carolina University. Ultimately, the donation fell through, and CCU cut ties with the donor, according to WCTV’s affiliate WMBF in Myrtle Beach, South Carolina.
Robinson, who had championed the donation and even invited the donor to speak at a spring graduation ceremony, took full responsibility for the oversight. “I wanted it to be real and ignored the warning signs along the way,” he admitted to the board.
“The public announcement at commencement was premature at best, and I apologize to all who witnessed it and shared their joy and jubilation. It is my belief that with the guidance of this board, we will arrive at a process much more transparent when it comes to such large gifts in the future,” he further stated.
Robinson also apologized to Board of Trustees Chair Kristin Harper. However, Harper was unimpressed. “I should have never been put on the spot or used for a convenient photo or video op for a gift that I knew nothing about,” Harper pointedly said.
Due to a non-disclosure agreement, Harper was not included in the inner circle that knew about the details of the gift. However, she did sign the gift agreement and was featured in the promotion of the donation on the university’s social media page.
During the meeting, Harper also expressed her frustration and disappointment for the reason behind Wednesday’s meeting and the implications it could “undoubtedly have on donor trust and confidence.”
She added, “I fully support your decision to cease this transaction. I only wish the decision would have been made during the six months spent developing the gift and before a public announcement that could tarnish the reputation of this university.”
This article was compiled from reports by WCTV and Tallahassee Democrat.
Feature image: FAMU receives a huge donation during Spring commencement (WCTV STAFF)