So this was to buy him off so he wouldn't speak about their corruption.
Practically all of my "info" is from what I have gleaned from Pack Pride. Even though they have been magnificent in keeping up with the multitude of UNC prongs of violations and shady actions, I will add a small disclaimer to what I'm posting. That and my "rememory" can sometimes be on the fritz. LOL!
IIRC, Graves had actually re-enrolled as a "student" (for lack of a better word) back at UNC while toiling away as a video coordinator and paying what was obviously an enormous amount of rent to Roy. Must have been picking up a lot of overtime coordinating videos. Or, maybe he was running some type of "side business" from the residence.

This was also during the time when UNC was about to get nailed for the consecutive years of substandard APR (where have you gone Deb DiMaggio?). I think if UNC had one more bad year of APR, then they were looking at potentially being ineligible for NCAA post season. Which I'm sure sent a collective OMG across the UNC/NCAA landscape. When Graves was originally booted from the team, he left in bad academic standing and was one of the reasons for the low APR scores during this time.
Packprider's surmised that Graves was welcomed/enticed/ordered back into the fold to get him back in school and reverse the APR hit(s) caused by his earlier time there. As fate would have it, there was also a high paying athletics dept. job open that allowed Graves to afford the exorbitant rent Roy was, uh, charging him.
Almost beyond belief that such a curious story about a former NCAA college basketball player living in his former coach's high priced rental while turning it into a hookah lounge never even garnered the slightest local or national media attention or even a nanosecond sideways glance from the NCAA.