A Michigan couple faces imprisonment in Mexico due to a payment dispute with a timeshare company, with Mexican prosecutors alleging fraud against a hospitality company.
The family insists on their innocence and seeks US government assistance.
Paul Akeo, 58, a Navy veteran, and his wife Christy, 60, from Spring Arbor were detained by authorities upon arriving in Cancun on March 4 for what was meant to be a holiday.
According to Lindsey Hull, her parents were arrested based on warrants stemming from a criminal complaint by "The Palace Company" regarding alleged fraud, potentially connected to their Palace Resorts timeshare.
Quintana Roo prosecutors stated on March 15 that the couple cancelled 13 credit card payments to a hotel chain, totalling over $116,500 in 2022, which they consider fraudulent.
The situation originated from a 2021 timeshare agreement between the Akeos and Palace Elite, a subsidiary of The Palace Company, according to family attorney John Manly, CNN reported.
The Akeos' legal team states that Palace failed to deliver promised services months into the contract, leading the couple to request a refund of approximately $117,000 through their credit card company, citing contract breach.
"The Akeos are being held because they successfully disputed Palace' [sic] charges and failure to deliver services with American Express, criticized the Company on Facebook and alerted others who felt wronged by Palace," Manly said in a statement.
Prosecutors claim Christy Akeo used Facebook to share details about the alleged fraud. Manly contends this is retaliation for disputing charges
.
The Palace Company's spokesperson told CNN they reported the Akeos to Mexican authorities for "fraudulently" disputing valid charges and encouraging others to do similar actions.
"Mexican prosecutors reviewed the evidence and, following failed attempts to serve notice, obtained a court-approved arrest warrant," the company stated.
Hull denies receiving any notice and explains her mother shared her negative experience with other Palace customers. She questions why social media activity led to arrest.
"My mom was very clear about that in this Facebook group where people were seeking information on what to do when you get in these memberships," Hull said. "If there's 8,000 people dealing with the same thing, and the same disappointments with Palace Resorts, and how they treat their members, maybe you should look in the mirror and make a change."
Mexican authorities have ordered continued detention during proceedings. The family seeks Washington's intervention for release.
Michigan Representative Tom Barrett acknowledged speaking with the constituent's family and working towards urgent resolution.
The US State Department confirmed awareness of two US citizens' detention in Mexico but provided no additional details.
Manly describes the couple's detention conditions as severely concerning in a maximum-security facility.
Hull emphasises the urgency, citing concerns about her parents' safety and declining health.
Paul Akeo serves as an engineer with Michigan State Police after 21 years in the Navy. Christy runs a small business and is a grandmother.
In a March 21 letter to The Palace Company's lawyer, Manly accused them of extortion and retaliation against the couple for challenging charges and sharing their experience online.
"Put plainly, in retaliation, your clients have captured, kidnapped, battered, assaulted, falsely imprisoned, threatened, intimidated, belittled, harassed, libeled and engaged in a course of such horrific and outrageous civil and criminal conduct against these two elderly Americans that is almost incomprehensible," Manly wrote.
The case has deterred others from Mexican travel. Jenn Bartko, 52, who received a similar refund, expresses hesitation about visiting Mexico.
"I just want more people to be aware of the scam, and this company needs to be stopped," Bartko said. "It's just not fair for people who are going to have a good vacation and our vacation was completely ruined by this experience."
Bartko describes a similar experience with Palace Elite membership at Moon Palace Cancun, citing unfulfilled promises and refund difficulties.
The Palace Company hasn't responded regarding numerous PROFECO (Mexico's consumer protection agency) complaints.
"We will not be going to Mexico for a while which is sad because we're right by the Mexican border. We love Mexico," Bartko said. "I'm not willing to try to find out because I don't want to get stuck in a Mexican prison."