Graceland sale halted by Tennessee judge after Elvis Presley’s granddaughter alleges fraud

A Tennessee judge on Wednesday blocked the Graceland auctionElvis Presley’s former home, by a company that claimed his estate had defaulted on a loan that used the property as collateral.

Shelby County Chancellor JoeDae Jenkins issued a temporary injunction against the proposed auction that was scheduled for Thursday this week.

“The court will prohibit the sale as requested because, first, the real property is considered unique under Tennessee law. And by being unique, the loss of the real property would be considered irreparable harm,” Jenkins said, according to CBS affiliate WREG-TV.

Jenkins’ injunction essentially keeps in place an earlier ruling he issued after Presley’s granddaughter, Riley Keough, filed a lawsuit to fight what she called a fraudulent scheme.

“As the court made clear, the claims were without merit. There will be no foreclosure. Graceland will continue to operate as it has for the past 42 years, ensuring that fans of “Elvis from around the world can continue to have a best-in-class experience when visiting his iconic home,” a spokesperson for Elvis Presley Enterprises Inc. said Wednesday.

A public notice regarding the foreclosure sale of the 13-acre Memphis estate, released earlier in May, said that Promenade Trust, which controls the Graceland museum, owed $3.8 million after failing to repay a 2018 loan Keough, an actress, inherited the trust and ownership of the house after the death of her mother, Lisa Marie PresleyLast year.

Naussany Investments and Private Lending said Lisa Marie Presley used Graceland as collateral for the loan, according to the foreclosure sale notice. Keough, on behalf of Promenade Trust, alleged in his lawsuit that Naussany presented fraudulent documents regarding the loan in September 2023.

Neither Keough nor lawyers for Naussany Investments were in court Wednesday.

Keough, who starred in last year’s hit series “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 his family. The lawsuit also states that Keough’s mother “never borrowed money” from the company, nor did she give them a deed of trust in favor of Graceland, and further alleges that documents claiming otherwise ” are fake.

Elvis purchased Graceland in 1957, at the age of 22, for $102,500. At the time he purchased it, the mansion measured 10,266 square feet, and Elvis also purchased 13.8 acres of farmland around the house. The mansion has since been expanded to 17,552 square feet.

Graceland, where Elvis died in 1977, was listed on the U.S. National Register of Historic Places in 1991. More than 600,000 people visit Graceland — named for Grace, the aunt of one of the original owners — each year.