Timeshare company claims Michigan couple detained in Mexico breached contract agreement, committed fraud
An attorney representing a Michigan couple who are currently detained in Mexico is challenging claims made by Palace Resorts, a Florida-based timeshare company, alleging that the couple breached contract agreements and committed credit card fraud.
The documents shared by Palace Resorts with CBS News Detroit outline the company’s rationale for pursuing criminal fraud charges against Paul and Christy Akeos. According to Palace Resorts, the Akeos entered into 19 membership agreements with Palace Elite between 2016 and 2021, investing over $1.4 million USD for exclusive benefits and rates meant for personal use.
The couple’s attorney, John Manly, asserts that the decision to pursue criminal charges is unfounded and characterizes the dispute as a civil matter rather than a criminal offense. Manly emphasized, “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.”
Palace Resorts claims that the Akeos violated the terms of their agreements by promoting and profiting from their benefits on social media, contrary to the contract’s stipulations. The company further alleges that the Akeos disputed membership charges with their credit card companies, resulting in over $100,000 in reversed fees.
In response to Palace’s accusations, Manly pointed out the couple’s right to free speech and criticized the company’s actions. He expressed disbelief at the company’s decision to file a criminal complaint against the Akeos, stating, “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.”
Despite Palace Resorts’ offer of a settlement that included a payment of $250,000, a non-disclosure agreement, assistance in dismantling a Facebook group, and a public apology, the Akeos declined, labeling it as extortion. Manly highlighted the potential consequences if the couple were to sign the settlement, emphasizing the risk of facing criminal charges and imprisonment in Mexico.
Manly revealed that the Akeos are challenging a recent court order in Mexico that extended the time for Palace Resorts to gather evidence and denied the couple’s request for house arrest, thereby requiring them to remain in detention until further notice.
