At Florida A&M University, this year’s commencement ceremony brought a remarkable twist: The 136-year-old historically black public school received a $238 million gift.
But the money didn’t come from a wealthy industrialist, a deep-pocketed philanthropist, or even a graduate. It was not cash or publicly traded stock, but rather illiquid stock.
The person behind the gift was 30-year-old Gregory Gerami, who the school initially described as “a champion of sustainable agriculture and biodegradable hemp products in Texas.” He had no previous ties to Florida A&M, and there was little public information to support his status as a multimillionaire capable of writing one of the largest philanthropic checks ever seen in higher education.
Now Florida A&M faces questions about weak internal controls. The university, which initially confirmed the gift’s authenticity, recently removed a press release about it from its website and decided to suspend it due to growing doubts. The Board of Trustees will hold an emergency meeting Wednesday afternoon to discuss next steps.
Gerami did not respond to multiple messages and phone calls.
“I learned about the gift on the morning of graduation, just like everyone else,” said Deveron Gibbons, vice chairman of the university’s governing board. “If it doesn’t actually turn out to be what we’re hoping for, we could probably prevent it by getting the board involved early.”
The school, also known as FAMU, declined to comment on the details of the donation, citing a non-disclosure agreement.
“We fully understand the skepticism that sometimes accompanies such a large gift,” the university said in a statement last week. “Please know that FAMU has conducted its due diligence.”
A few years ago, Jeramy was also linked to a $95 million pledge to Coastal Carolina University, a deal that fell apart a few months after it was announced. CCU terminated that agreement, a university spokesman said, without mentioning Gerami. Myrtle Beach Sun News identified he is like a donor.
HBCU Donations
FAMU is one of the nation’s top historically black colleges and universities. The school’s origins date back to October 1887, when its predecessor institution was formed through state legislation sought by a black legislator. Alumni include former Atlanta Mayor Keisha Lance Bottoms and film producer Will Packer.
Located in Tallahassee and serving about 10,000 students, FAMU is one of about 100 HBCUs, a group that includes Howard University and Spelman College.
Spelman revealed a $100 million gift from the trustee in January, and HBCUs have also received support in recent years from wealthy donors such as Mackenzie Scott and Blackstone Inc.This is John Gray. However, many schools are underfunded and major gifts remain rare.
While the richest universities and top public Ivy League schools boast investment portfolios in the tens of billions of dollars, most HBCUs run less than $100 million In assets, if they have any capital at all, according to PGIM.
“We always work hard to ensure we have a good donor base that we work with regularly to help students cope with daily life and succeed,” Gibbons said.
Increase in donations
Jeramie’s $238 million gift will nearly triple the size of FAMU’s endowment, an act of philanthropy comparable to the $300 million Ken Griffin gave to Harvard last year. But there’s reason to wonder if FAMU will ever see that money.
FAMU said in a statement that Jeramie contributed the equity stakes to the university’s account last month, without specifying what the valuation of the assets was based on. The school said the gift came from Gerami and the family foundation of which he is a trustee.
At the blackboard meeting Last week, the FAMU Foundation, which is the custodian of the school’s endowment, described the shares as a private illiquid investment issued by Batterson Farms Corp., a closely held Gerami hemp company formed in 2021.
During the roughly two-hour Zoom meeting, university officials acknowledged that they had not conducted an independent analysis of the stock’s value and cited a nondisclosure agreement to explain why it did not inform board members. FAMU President Larry Robinson then announced that the gift was being suspended.
Texas business
Gerami describes himself as a self-made businessman, “the youngest African-American seed grower and seller” in the Texas industrial hemp industry. In the company’s online biography, he said he entered foster care at just 10 days old with fetal alcohol syndrome and a diagnosis of cerebral palsy.
A Texas grower’s license has been issued for his hemp business, Batterson Farms, until at least December 2023. The Texas Secretary of State’s website lists the company’s address as a small, one-story home in suburban San Antonio.
Jeramy says his company has offices in San Antonio and Van Horn, Texas, a city of 2,000 people about 120 miles east of El Paso. At FAMU’s impromptu news conference last week, he declined to answer questions about his net worth or give specific numbers for his business.
Jeramy said Batterson Farms employs 7,000 people, including contractors. A LinkedIn search shows he is the only employee. companies Instagram the account advertises jewelry and tea.
Last year, Batterson Farms promised to build the largest commercial hydroponic hemp warehouse in West Texas, in Muleshoe. The project “didn’t get off the ground,” City Manager Ramon Sanchez said.
Tillery Timmons-Sims, a board member of the Texas Hemp Industry Association, said she is not familiar with Jeramie’s business. She said the profitability of the agricultural business is slim and the hemp industry is not known as a major source of wealth.
Chekesha Kidd, a FAMU Foundation board member, advocates for broader reform. At last week’s meeting, she advocated for a review of procedures regarding gifts from major donors.
“We all believe and understand that there was positive intent here,” she said at the meeting. “But if that doesn’t mean we need to take a step back and look at getting our own house in order, I don’t know what else will.”