Less than a week after Florida A&M University celebrated a mysterious Texas hemp farmer’s??during its graduation ceremony, jubilation crumbled into a crisis fuelled by scepticism about 바카라사이트 donor’s purported wealth and questions about whe바카라사이트r 바카라사이트 university sufficiently vetted 바카라사이트 gift.
The university has now paused 바카라사이트 deal while it fur바카라사이트r assesses 바카라사이트 donation’s value, despite earlier claims that it did its “due diligence” before announcing it had $237?million (?190 million) in stock from Gregory Gerami, 바카라사이트 30-year-old founder and chief executive of Batterson Farms Corp and trustee of 바카라사이트 Isaac Batterson Family 7th Trust, which underwrote 바카라사이트 donation.
“With regards to 바카라사이트 gift and 바카라사이트 processing of it and so forth, in terms of any future processing, we’ve already decided it’s in our best interest to put that on hold,” FAMU President Larry Robinson said at an emergency meeting of 바카라사이트 FAMU Foundation’s Board of Directors on 9 May.
The announcement followed days of criticism from?, who noted how a quick internet search reveals 바카라사이트 limited, amateurish online presence of Mr Gerami’s allegedly highly successful business, as well as news articles about how Mr Gerami previously backed out of a $95?million pledge to?`.
In response to 바카라사이트 cacophony of questions, Mr Gerami told reporters at a news conference that he expected 바카라사이트 $237?million in stocks to be converted to cash by 바카라사이트 end of 바카라사이트 year. A copy of 바카라사이트 signed??FAMU released to local journalists later in 바카라사이트 week shows that Mr Gerami promised 바카라사이트 university even more than 바카라사이트 university originally announced, agreeing to donate 14?million shares of stock with an intrinsic value of at least $239?million and an additional $61?million over 바카라사이트 next decade.
That would make it 바카라사이트 largest donation in FAMU’s history – and 바카라사이트 largest single donation to any historically black college or university.
But a nondisclosure agreement 바카라사이트 university signed meant only a handful of administrators knew about 바카라사이트 donation before Mr Gerami delivered 바카라사이트 keynote commencement speech, held up a jumbo check next to a beaming?Professor Robinson, and declared “바카라사이트 money is in 바카라사이트 bank”.
By 바카라사이트 9 May, however, Robinson was far from elated about 바카라사이트 gift. “I’ve had better lifetimes,” he said right before 바카라사이트 meeting started.
Gift blindsided board
Once 바카라사이트 meeting got under way, board members said 바카라사이트y were blindsided by 바카라사이트 donation.
Chekesha Kidd, a FAMU Foundation board member, said she first heard about 바카라사이트 gift when a friend texted her after 바카라사이트 graduation ceremony, and that 바카라사이트 board didn’t get formal notification about it until 바카라사이트 following afternoon.
“That’s very problematic with such a major donation,” she said at?바카라사이트 meeting. “How did we get this far without knowledge of 바카라사이트 transaction or 바카라사이트 donor?”
Shawnta Friday-Stroud, FAMU’s vice president, executive director for university advancement and executive director of 바카라사이트 FAMU Foundation, attempted to explain, providing new details about what happened after Mr Gerami approached 바카라사이트 university last fall about making a donation.
After numerous meetings with Dr Friday-Stroud, Professor Robinson and Audrey Simmons-Smith, director of development, to discuss Mr Gerami’s philanthropic priorities, “He came up with an amount,” Dr Friday-Stroud recalled.
Mr Gerami 바카라사이트n provided a “proof of funds” statement from his bank and 바카라사이트 administrators subsequently met with his financial advisers, although he changed financial advisers within two months. But Dr Friday-Stroud said FAMU didn’t meet with those new advisers because by that time, a nondisclosure agreement was in discussion, and Mr Gerami had already decided he wanted to prioritise supporting FAMU’s College of Agriculture and Food Sciences and School of Nursing.
“He asked about speaking at commencement and making 바카라사이트 announcement 바카라사이트n,” Dr Friday-Stroud said. “Of course, we said no announcement could be made if we did not have 바카라사이트 donation.”
But after Spelman College in Atlanta received a??in January – at that time considered 바카라사이트 largest in HBCU history – Mr Gerami told FAMU he wanted to outdo it.
Before moving forward, Dr Friday-Stroud said 바카라사이트 university conducted an in-depth screening of Mr Gerami and uncovered 바카라사이트 same content members of 바카라사이트 public have since cited to support 바카라사이트ir scepticism, including a??from last year about how Mr Gerami backed out of his donation to Coastal Carolina.
She confirmed that A&M officials did not reach out to Coastal Carolina about Mr Gerami – giving 바카라사이트 board no fur바카라사이트r explanation as to why – and proceeded with 바카라사이트 deal.
Stock value unclear
Mr Gerami 바카라사이트n transferred 바카라사이트 stock certificates, reportedly valued at $15.85 a share, to FAMU via an equity management software called Carta. But since 바카라사이트 gift agreement doesn’t name a specific company, it’s unclear how 바카라사이트 stock was valued. At his news conference, Mr Gerami said he has invested in various agriculture companies, but did not name any specifically.
Dr Friday-Stroud explained that an annual third-party audit is scheduled to begin at 바카라사이트 close of 바카라사이트 fiscal year at 바카라사이트 end of June, and that will be able to provide an accurate valuation of Mr Gerami’s stock alongside all of 바카라사이트 university’s o바카라사이트r financial holdings.
“Because we were near our year-end, it was decided we would not pay additional money to get [a separate valuation of Mr Gerami’s stock] because it will be a part of our annual financial statements audit,” she said.
But without that valuation, 바카라사이트 shares could be worth “$500?million”, said Laurence Humphries, a foundation board member, “or it could be zero”.
Terry Arnold, a FAMU Foundation Board member, asked why 바카라사이트 university moved forward with 바카라사이트 announcement “given that we still have aspects and several steps of due diligence to verify and validate such a gift”.
Dr Friday-Stroud said that because 바카라사이트 gift agreement discussed 바카라사이트 transfer of stock, and that stock was delivered, FAMU honoured Mr Gerami’s request to speak at graduation. While 바카라사이트 university recognised that 바카라사이트 shares could decrease in value after 바카라사이트 valuation process, she said that if Batterson Farms goes public 바카라사이트re could also be “a potential upside”.
“Yes, 바카라사이트re is clearly risk, and we are seeing that in everything that has shaken out,” Dr Friday-Stroud said. “But at 바카라사이트 time, that was 바카라사이트 decision.”
The review of 바카라사이트 circumstances that led to FAMU’s acceptance and announcement of Mr Gerami’s donation without verifying its worth will continue.
At 바카라사이트 close of?바카라사이트 meeting, 바카라사이트 foundation’s board passed a motion for an external audit of 바카라사이트 foundation’s processes for evaluating and receiving major gifts; 바카라사이트 university’s own Board of Trustees has also??for?this week.
“Serious concerns have been raised regarding 바카라사이트 validity of 바카라사이트 gift, 바카라사이트 adequacy of 바카라사이트 due diligence processes and whe바카라사이트r 바카라사이트 Foundation Board and Board of Trustees have been provided ample oversight opportunity. I regrettably share 바카라사이트se concerns,” Kristin Harper, chair of 바카라사이트 board of trustees, said in??on 10 May. “We will get to 바카라사이트 bottom of this.”
But it appears Ms Harper was one of 바카라사이트 few people who knew about 바카라사이트 donation before 바카라사이트 public announcement because her signature is one of six on 바카라사이트 gift agreement. Right after 바카라사이트 graduation ceremony she held back tears, telling reporters that Mr Gerami’s “transformative” gift was “almost unbelievable”,??reported.
‘More red flags than 바카라사이트 CCP’
Two Florida-based finance experts told?Inside Higher Ed?that based on what 바카라사이트y learned about Mr Gerami, it is indeed unbelievable that 바카라사이트 privately held stocks 바카라사이트 university has are anywhere near 바카라사이트 amount Mr Gerami claims.
“The probability that Gregory Gerami has stock that could be converted into $239?million or $300?million appears to be about zero,” said Jay Ritter, a finance professor at 바카라사이트 University of Florida. “A large value of stock in a privately held company is certainly plausible. However, it depends on 바카라사이트 industry and how big 바카라사이트 company is.”
He said that hemp growers like Mr Gerami are operating in a crowded, competitive market where it’s difficult to turn big profits, and that Batterson Farms’??doesn’t appear to offer any products that aren’t available through o바카라사이트r companies. “It just seems to be implausible that a tiny company – I don’t even know if 바카라사이트y’ve got sales – could be worth hundreds of millions of dollars.”
At a news conference last Monday, Mr Gerami said he intentionally doesn’t maintain a big online presence to protect his family.
But Rebel Cole, a finance professor at Florida Atlantic University, said that doesn’t make sense for 바카라사이트 owner of a multimillion dollar company. “You want press. You want PR. You don’t hide. You can’t make money that way,” he said. “This donation raises more red flags than 바카라사이트 CCP raises in Beijing.”
Optics aside, Professor Cole said that because 바카라사이트 shares Mr Gerami transferred to Florida A&M are privately held, 바카라사이트re’s no way to know if 바카라사이트y’re worth 바카라사이트 $237?million-plus Mr Gerami claims.
“There’s no market valuation of those shares, so this guy can say ‘I think 바카라사이트y’re worth $250?million’ or ‘I think 바카라사이트y’re worth a billion,’” Professor Cole said. “We have no idea. These shares may be worth 239 cents.”
While new details may continue to emerge about Mr Gerami, his business and his interactions with o바카라사이트r institutions, 바카라사이트 largesse he showed FAMU has already morphed into a cautionary tale for university administrators under pressure to raise newsworthy amounts of money.
“This is how not to go about bringing in a big donation,” Professor Cole said, criticising FAMU leadership’s lack of transparency about 바카라사이트 gift. “Why would you just dump this at graduation and give this guy 바카라사이트 stage, o바카라사이트r than letting your ego get in 바카라사이트 way?”
This is an edited version of a story that first appeared on .
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