Imagine landing in Cancun, ready for the turquoise water and a cold drink, only to be met by seven police officers who haul you off to a maximum-security prison. No resort. No margaritas. Just a concrete cell and a bucket of water for both your shower and your toilet.
This isn't a Netflix thriller script. It’s what happened to Paul and Christy Akeo, a couple from Lansing, Michigan. Their dream vacation turned into a 32-day nightmare that has now exploded into a massive legal battle. Honestly, the details are enough to make anyone rethink their next tropical getaway.
The Michigan couple sues Palace Resorts timeshare and its CEO, José Gibrán Chapur Dájer, alleging everything from defamation to "lawfare." They’re claiming they were basically held hostage over a credit card dispute. But as with any messy breakup, the other side has a very different story to tell.
The $116,000 Dispute That Sparked a War
The Akeos weren't just casual vacationers. They were "Diamond" level members of Palace Elite Resorts, having signed something like 19 different contracts over several years. We're talking an investment of over $1.4 million.
But things soured in 2021.
The couple claims the resort pulled a bait-and-switch. They were part of an "unlimited referral program" where they’d bring in guests and earn free weeks. Suddenly, the resort changed the rules. According to their lawyer, John Manly, the company started canceling reservations and blocking the couple from selling their weeks.
Basically, the Akeos felt they were paying $6,200 a month for benefits that didn't exist anymore.
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So, they did what most of us would do if we felt cheated. They called American Express. They disputed $116,587 in charges, arguing they didn't get what they paid for. American Express looked at the evidence and—initially—sided with the Akeos. They got their money back.
But in Mexico, a chargeback isn't always just a civil matter.
Arrested at the Airport: The "Red Notice" Nightmare
Fast forward to March 4, 2025. The Akeos land at Cancun International Airport. They aren't even staying at a Palace property this time; they’re headed somewhere else.
But as they cleared immigration, the red flags went up.
Palace Resorts hadn't just moved on. They had filed a criminal fraud complaint in the state of Quintana Roo. They alleged the couple committed "credit card fraud" and "theft of services." Because the amount was so high, a judge issued an arrest warrant. There was even an Interpol "Red Notice" involved.
The couple spent the next month in a Mexican prison. Their daughter, Lindsey Lemke Hull, used social media to show the world the "nightmare out of a movie" her parents were living. She described horrific conditions:
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- Overcrowded cells with violent criminals.
- Food that was "untouchable."
- Total lack of medical care (Christy reportedly lost 25 pounds in 32 days).
- No communication with the outside world for days.
The Lawsuit: Defamation or Fraud?
Now that they’re back on U.S. soil—thanks to an assist from Congressman Tom Barrett—the gloves are off. The Michigan couple sues Palace Resorts timeshare in a Florida court, seeking a jury trial and unspecified damages.
They claim Palace Resorts used the Mexican criminal justice system as a weapon to extort them. The lawsuit alleges "malicious prosecution" and "intentional infliction of emotional distress."
But the resort isn't backing down.
In their statements, Palace Company claims the Akeos didn't just dispute charges—they "conned" the system. They allege the couple bragged on Facebook about how to "terminate" memberships using fraudulent means. They even point to screenshots where Christy allegedly encouraged others to rack up gift shop bills and then report their cards lost or stolen.
The resort's stance is pretty clear: This wasn't a "contract dispute." It was a coordinated effort to defraud a business of six figures.
What Most People Get Wrong About This Case
A lot of people think this is just a "timeshare scam" story. It's more complicated than that.
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First, there’s the jurisdictional trap. When you sign a contract in Mexico, you are often agreeing to Mexican law. What we see as a "consumer dispute" can be categorized as "fraud" or "theft" under Mexican statutes.
Second, the "settlement" that got them out of jail is its own legal battle. To leave Mexico, the Akeos had to sign a Mutual Release and Nondisparagement Agreement. They also had to agree to "donate" the disputed $116,000 to a Mexican charity for orphans.
Now, the Akeos are trying to get that agreement thrown out. They say they signed it under "extreme duress" while a Palace lawyer stood over them in a prison-adjacent office.
Why This Case Matters for Every Traveler
You don't have to be a millionaire timeshare owner to learn something here.
- Chargebacks have consequences. In the U.S., a chargeback is a consumer right. In other countries, it can be viewed as "obtaining services under false pretenses"—a crime.
- Contracts are King. Timeshare contracts are notoriously dense. The Palace Elite contracts are nearly 50 pages long. If the contract says the resort can change the rules at any time, they usually can.
- Social media is evidence. The posts Christy made in the "Palace Members - DISAPPOINTED & FRUSTRATED" Facebook group are a centerpiece of the resort's defense. What you say online can and will be used against you in a foreign court.
Actionable Steps for Timeshare Owners
If you're currently in a dispute with a resort—whether it's Palace or anyone else—don't just stop paying or hit the "dispute" button on your app and hope for the best.
- Consult a Transnational Lawyer. If your contract is based in Mexico, a Michigan lawyer can only do so much. You need someone who understands the penal code in the country where the resort is located.
- Keep Your Mouth Shut Online. It’s tempting to vent in Facebook groups, but companies monitor those groups. Any admission of "getting one over" on the company is gold for their legal team.
- Avoid "Rescue" Scams. There are tons of companies claiming they can get you out of a timeshare for a fee. Many of these are just as predatory as the timeshares themselves.
- File Official Complaints. Instead of a chargeback, start with PROFECO (Mexico's Office of the Federal Prosecutor for the Consumer). It's slower, but it's the "official" way to handle disputes without ending up in a "Red Notice" situation.
The Akeos' case is a chilling reminder that when you cross borders, your rights don't always follow you. Whether they were "scammed" or "scammers" is now for a Florida jury to decide, but the 32 days they spent in a Cancun prison is a price nobody wants to pay for a vacation dispute.
If you’re worried about your own timeshare contract, your first move should be a professional audit of the "Default" and "Jurisdiction" clauses. Don't wait until you're at the airport gate to find out there's a warrant with your name on it.