Graceland Is Headed For Foreclosure As Elvis Presley's Granddaughter Fights Sale, Alleges Fraud

According to an apparent foreclosure notice, the estate — which was built in 1939 — is set to be auctioned off at the Shelby County courthouse in Memphis, Tennessee, on Thursday. Elvis' granddaughter, Riley Keough, claims Naussany Investments "appears to be a false entity created for the purpose" of defrauding her family.

Tuesday, May 21st 2024, 12:03 pm

By: CBS News


Elvis Presley's Graceland Mansion, a popular tourist attraction and the singer's final resting place, is at the center of a court fight as it appears to be headed for a foreclosure auction later this week. But Elvis' granddaughter, actor Riley Keough, is fighting back with a lawsuit that alleges fraud.

According to an apparent foreclosure notice, the estate — which was built in 1939 — is set to be auctioned off at the Shelby County courthouse in Memphis, Tennessee, on Thursday.

The foreclosure is allegedly occurring because Elvis' daughter, Lisa Marie Presley, used Graceland as collateral to secure a $3.8 million loan from a company called Naussany Investments and Private Lending in 2018, but she failed to pay it off before she died last year. 

Keough, who starred in last year's hit show "Daisy Jones and the Six," is the heir to the estate.

In a lawsuit, Keough claims Naussany Investments "appears to be a false entity created for the purpose" of defrauding her family. The lawsuit also says Keough's mother "never borrowed money" from the company, or gave them a deed of trust to Graceland, and further alleges that documents claiming otherwise "are forgeries."

The lawsuit includes a sworn affidavit from the notary public whose name appears on the deed of trust, saying in part, "I did not notarize this document."

A judge will consider those allegations in a hearing Wednesday, after an attorney for Keough says a temporary restraining order was granted Monday, according to CBS affiliate in Memphis WREG. 

"You want to keep the status quo and make sure nothing changes — make sure nobody is harmed," said Jessica Levinson, a CBS News legal contributor. "And the biggest harm would come from an illegitimate sale of Graceland."

CBS News reached out to two people who appeared to be affiliated with the investment and lending company, and they said they would send our questions to their attorneys.

Elvis Presley Enterprises manages Graceland and said in a statement that the foreclosure claims are "fraudulent." In a social media post, Presley's ex-wife, Priscilla Presley, uploaded a photo of Graceland that was captioned, "It's a scam!"

In 1957, at the age of 22, Elvis bought Graceland for $102,500. At the time he purchased it, the mansion was 10,266 square feet, and Elvis bought 13.8 acres of the farm around the house. Today, the Graceland mansion is 17,552 square feet.

Graceland, where Elvis died in 1977, was named to the American National Register of Historic Places in 1991. Over 600,000 people visit Graceland — named after Grace, an aunt of one of the original owners — each year.

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