The failed Upstate investment company that owes hundreds of millions to its customers is officially out of business, and a grand jury has gone to work in a long-expected criminal investigation.

Pickens-based Carolina Investors on Wednesday voluntarily surrendered its license to sell investment notes to the public.

"They no longer have the authority to operate in South Carolina,'' said Trav Robertson, spokesman for the State Board of Financial Institutions.

The action came at a meeting of the State Board of Financial Institutions. During the same gathering, Carolina Investors parent HomeGold Financial surrendered 12 of its finance licenses, but is still doing business in three locations.

"This is just a formality. The licenses were for offices we had already closed or sold,'' said Karen Miller, chief financial officer of Columbia-based HomeGold, which sells high-interest mortgages to people with less-than-perfect credit ratings.

HomeGold sold many of its offices earlier this year to Emmco LLC, a company started by former HomeGold chief executive Ronnie Sheppard. Emmco has since closed many of the offices nationwide.

HomeGold and Carolina Investors both declared Chapter 11 bankruptcy in the spring. Federal and state authorities are investigating operations related to Carolina Investors, HomeGold and Emmco.

A state grand jury held its first meeting last week as part of an investigation into the collapse of Carolina Investors and its parent company, HomeGold Financial.

The S.C. Attorney General's office would not say whether any witnesses had testified or how long the probe will continue. Grand jury proceedings are secret.

HomeGold is still operating from its Broad River Road location in Columbia, and from offices in Connecticut and Illinois.

Carolina Investors has been closed since March. It owes more than $275 million to several thousand South Carolina residents.

The State Board of Financial Institutions is responsible for licensing financial-related companies, including banks, thrifts and credit unions.