Elvis' granddaughter fights Graceland foreclosure auction this week

May 21 (UPI) -- Elvis Presley's Graceland mansion in Memphis is scheduled for a foreclosure auction Thursday, but his granddaughter is fighting back with a lawsuit alleging fraud.

A Shelby County Courthouse notice says the mansion and its property will be auctioned and sold to the highest bidder.

Elvis' daughter Lisa Marie Presley allegedly used the mansion as collateral to secure a $3.8 million loan in 2018.

She didn't repay the loan before dying in January 2023, Naussany Investments & Private Lending claims, and scheduled the foreclosure auction after placing a lien on the Graceland mansion and property.

Riley Keough, 34, is Lisa Marie Presley's daughter and Elvis' granddaughter and filed a countersuit Wednesday accusing Naussany Investments of being a fraudulent enterprise.

Keough says her mother never borrowed money from Naussany Investments.

"Naussany Investments & Private Lending LLC appears to be a false entity created for the purpose of defrauding the Promenades Trust, the heirs of Lisa Marie Presley or any purchaser of Graceland at anon-judicial sale," Keough says in her lawsuit.

The deed of trust allegedly signed in May 2018 in Florida never was recorded in Shelby County, where Graceland is located, and allegedly contains forged signatures that appear to be those of Lisa Marie Presley because she never signed the documents, Keough says.

She says the notary public whose signature is on the Florida promissory note and the deed of trust confirmed she never signed the documents.

Keough also says the Florida promissory note allegedly signed in 2018 wasn't used until 2020.

Keough wants the Shelby County Court to stop Thursday's foreclosure auction and is scheduled to appear in court Wednesday along with Naussany Investments representatives regarding her legal filing.

Keough inherited Graceland and Promenades Trust upon her mother's passing.

The estate was built in 1939 and is Presley's former residence and his final resting place. It also is one of the most popular tourist attractions in Tennessee.

Elvis bought the 10,266-square-foot Graceland mansion in 1957 when he was 22 for $102,500. He later bought adjacent farmland and expanded the mansion to 17,552 square feet.

Elvis died at Graceland in 1977 and is buried on its grounds.

The American National Register of Historic Places added Graceland to its registry in 1991.

The mansion draws more than 600,000 visitors every year.