An assistant U.S. Attorney held a conference call with spurned investors of prominent Raleigh businesswoman Carolyn Grant on Friday morning to update them on the federal government’s investigation into her business activities.
Cary businesswoman Phyllis Eller-Moffett, who was among about 50 people on the call, said the case was moving forward.
She said details of the call were not intended to be made public but that they would be made public soon. “Now I guess they’re coming down to the wire and there’s a plan and a loose schedule so they decided that they should tell us before it goes out and everybody else knows about it,” she said.
Neither Grant or her attorney returned calls seeking comment Friday.
Eller-Moffett was one of dozens of friends and acquaintances – many of them prominent local business people – from whom Grant borrowed money from 2006 to 2010, as much as $7 million or more. Some were personal loans, others were for real estate projects. Many were promised returns of 20 percent or more on short-term loans that lasted from 30 days to a year.
A number of former friends, including Eller-Moffett, sued Grant after they became aware of the scale of her borrowing. Judgments of more than $3.2 million have been awarded against Grant in Wake County.
Last week, Eller-Moffett said she received a letter from the United States Postal Inspection Service in Raleigh informing her that David Bragdon, an assistant U.S. Attorney in the Eastern District of N.C., would provide information about the investigation of Grant on a conference call.
Complaints made by Eller-Moffett and other investors had earlier spawned investigations by the N.C. Real Estate Commission and the Secretary of State. Grant, who ran the Raleigh real estate company Omega Property Group, surrendered her real estate license a year ago.
Eller-Moffett said she and others were told several months ago by the Secretary of State’s office that the feds had taken over the investigation.
She said Friday’s conference call lasted about 90 minutes, with investors asking Bragdon where the money went and whether Grant had sent any to friends or family members. Bragdon didn’t return a call seeking comment late Friday. Eller-Moffett, CEO of Quality Staffing Specialists, said those on the call were told they’d be able to testify about their dealings with Grant at a future court date.