Tennessee AG turns probe into failed Graceland foreclosure over to federal investigators

The Tennessee Attorney General turned the investigation into the failed foreclosure of Elvis Presley's Graceland estate to federal investigators, according to a spokesperson for the office.

"The Tennessee Attorney General's Office looked into the Graceland matter, and it quickly became apparent that this was a matter best suited for federal law enforcement. We have faith in our federal partners and know they will handle this appropriately," director of communications for the Tennessee Attorney General's Office Amy Lannom Wilhite said in a statement to ABC News.

In May, Tennessee AG Jonathan Skrmetti announced that his department would look into the attempt by an investment group to foreclose on Graceland.

Actress Riley Keough, Presley's granddaughter, and daughter of Lisa Marie Presley, sued to stop a company calling itself "Naussany Investments and Private Lending LLC" from auctioning off the Memphis estate visited by millions from around the world.

Keough alleges Naussany presented fraudulent documents last September "purporting to show that Lisa Marie Presley had borrowed $3.8 million from the company and gave a deed of trust encumbering Graceland as security," according to court documents obtained by Memphis ABC affiliate WATN.

The sale had been scheduled for late May but was blocked by a judge, and the effort was ultimately dropped.

ABC News was not able to reach Naussany Investments. A spokesperson for the company previously declined to comment.

Skrmetti said in May lawyers from the AG's office would look into the matter "and identify" what they could do to "protect both Elvis Presley's heirs and anyone else who may be similarly threatened."

"My office has fought fraud against homeowners for decades, and there is no home in Tennessee more beloved than Graceland," Skrmetti said.

-ABC News' Jared Kofsky contributed to this report.