Timeshare company claims Michigan couple detained in Mexico breached contract agreement, committed fraud
detained in Mexico
disputes claims that the couple breached a contract agreement with a timeshare company and committed credit card fraud.
Palace Resorts, a Florida-based company that owns multiple resorts and properties in Mexico, shared documents with CBS News Detroit detailing the reasons behind its decision to pursue criminal fraud charges against the couple.
In a statement, the company says, "Between 2016 and 2021, the Akeos knowingly and willingly entered into 19 separate membership agreements with Palace Elite, investing over $1.4 million USD in exchange for exclusive benefits and rates intended strictly for personal use."
A nearly 50-page contract shows the money Paul and Christy Akeos paid and the guidelines the couple was expected to follow when using the properties.
Their attorney, John Manly, says the decision to pursue criminal charges is overblown.
"This is just a bunch of lies and I think what the documents illustrate is this is a civil dispute," Manly said. "We don't put people in prison in this country or in Mexico for breach of contract. This is a timeshare, not a crime share," said Manly.
Palace says the Akeos were found to be in "material breach" of the agreements in 2021 and alleges that the couple promoted and profited from their benefits on social media, which the company says is explicitly prohibited under the terms of the contract.
"Last time I looked, we had the First Amendment, we had free speech," said Manly.
Palace claims they notified Akeos of the violation and sent the couple a waiver they signed in April 2022. In it, they acknowledge what they did and agree to refrain from posting any future comments about the company. Palace claims the Akeos then began disputing their membership charges with their credit card companies, getting more than $100,000 in reversed fees.
In Facebook posts shared with CBS News Detroit, the company alleges the Akeos bragged about these chargebacks and encouraged others to follow suit. That's when attorneys for Palace sent a cease-and-desist letter accusing the couple of providing "specific instructions to current palace elite members on how to purportedly 'terminate' their respective membership agreement using illegal and fraudulent means."
That led Palace to file a criminal complaint against the couple in August 2023.
"I'm sorry, if you use inflammatory language about your hotel or your vacation timeshare in Mexico, you go to jail? Really? That's their complaint? These people have no business being in prison anywhere. This is a contract dispute," said Manly.
Manly says Palace recently offered the Akeos a settlement if the couple paid $250,000, signed a non-disclosure agreement, helped take down the Facebook group, and publicly apologized.
The family declined, calling it extortion.
"But more importantly, Palace could say, 'Oh, you violated this. You've committed fraud. We're putting a red notice out on you. We're going to charge you with a crime,' and they'd be right back in prison in Mexico. They can't sign it, and they're not going to sign it," said Manly.
Manly says the couple is still fighting the recent order by a Mexican court that gave palace resorts six more months to gather evidence and denied the Akeo's request for house arrest, ordering them to remain in jail until then.
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