US couple released after being 'held hostage' in grim Mexican jail for challenging timeshare resort

"Do not confront rogue timeshare companies without professional help," customers advised following Michigan couple's Mexican jail nightmare

Timeshare purchase

In 2021, Michigan couple Paul and Christy Akeo spent more than $117,000 in timeshare purchases with Palace Elite, a subsidiary of Mexican timeshare giant The Palace Company based in Cancun on the Quintana Roo,

A few months later, Paul, 58, and Christy, 60 challenged Palace over services they claim they were promised but were not delivered. Christy was also active on a Facebook group of 8000 other people allegedly dealing with similar disappointments involving Palace Resorts.

The Akeos say they failed to achieve satisfaction from Palace and took matters into their own hands, filing a dispute with American Express. AMEX investigated and ruled in favour of the Spring Arbour based couple, refunding them more than $116,500 in 2022.

Arrest in Mexico

On March 4th this year the Akeos returned to Mexico for the first time since winning their dispute with Palace. Intending to stay for a regular holiday, Mr and Mrs Akeo only discovered there were arrest warrants outstanding for them when they were taken into custody shortly after arriving in the country.

Daughter, Lindsey Hull, says that her parents were charged with fraud by The Palace Company. Quintana Roo prosecutors alleged in a statement on March 15th that the couple illegally cancelled $116,500 worth of credit card payments to The Palace Company.

At the time John Manly, the couple's attorney said: “The Akeos are being held because they successfully disputed Palace charges and failure to deliver services with American Express, criticized the company on Facebook and alerted others who felt wronged by Palace.”

Prosecutors doubled down, saying Christy Akeo: “went on Facebook to inform how said fraud was committed against the hotel chain.”

A spokesperson for The Palace added that: "The Akeos fraudulently disputed legitimate credit card charges and publicly encouraged others to do the same. Mexican prosecutors reviewed the evidence and, following failed attempts to serve notice, obtained a court-approved arrest warrant.”

'Hell hole prison'

Grandparents Paul and Christy were "held captive in a hell hole of a Mexican maximum security prison," according to Manly, who revealed that Paul is currently working with the Michigan State Police. "You’ve imprisoned a highly decorated U.S. Navy veteran, a first responder and a grandmother because they dared to call out your timeshare client's well-documented deceptive practices and abuse of its customers,” Manly continued. “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,”

The timeshare company was reported to have demanded $250,000 and a non-disclosure agreement along with public apology on social media accepting all blame. Manly described this as using law enforcement for “hostage taking” and extortion.

The Mexican judge ordered the couple's detention and refused an application for house arrest, despite their daughter's desperate pleas: “The urgency is beyond important because we have no idea what is happening to them at any time. Their lives are in danger. Their health is declining. We need to get these people home,” says Hull.

Michigan congressman Tom Barrett issued a statement that he has spoken with the family and was working to "ensure the situation is resolved as urgently and safely as possible."

Released

After 32 days of incarceration the Akeos were released, following international media attention and pressure from the US state department. As part of the resolution the couple agreed to pay $116,587.84 to a Mexican charity for orphans.

“No American should be held hostage to the demands of a private company anywhere in the world,” the Akeo's children said in a statement. “Paul and Christy are under the care of physicians and therapists to be treated for illnesses and trauma inflicted upon them during their captivity. We ask that their privacy be respected as they rest and heal.”

Buyer beware

Greg Wilson, CEO of European Consumer Claims says that non-professionals taking on a timeshare company is never generally a good idea. "Timeshare resorts have a long, established history of consumer exploitation, and are not above abusing the law to the fullest extent they can get away with.

"In Europe, even when judges have ruled against such businesses, their legal teams do their utmost to delay and obstruct justice. It takes experienced experts to overcome these tactics.

"In a country like Mexico, which is ranked 126 out of 180 countries for corruption, it would be reasonable to anticipate more extreme abuses of law, such as appears to have happened here.

Wilson points out that that criminals in the wider, timeshare-related business sphere have not hesitated to operate completely outside of the law. "Mexico in particular has formidable organised crime elements stemming from the cartels, and they have a concerning history of violence in this regard.

"Challenging any powerful business is always risky, as they have the resources to protect themselves. In certain countries, 'protecting themselves' can mean at great detriment to the individual consumer attempting to challenge them."

So what can you do if you have been mis-sold?

Regardless of where you have fallen foul of a timeshare company, ECC can help.

Get in touch with our experts for a free, no obligation consultation. (Or with American Consumer Claims if you are based in the USA)

Our experts will let you know your best options for achieving redress.