Michigan couple sues resort company after Mexican prison ordeal over timeshare dispute
Aug 21, 2025, 11:43 AM
DETROIT (AP) — A Michigan couple held for 32 days in a maximum-security Mexican prison without trial over a dispute with a luxury timeshare company has filed a lawsuit against the company and its chief executive.
Paul and Christy Akeo of Lansing allege defamation, malicious prosecution and intentional infliction of emotional distress in the complaint filed last week in Florida. They are seeking unspecified monetary damages and a jury trial.
The Akeos say they disputed about $116,000 in credit card charges after Palace Elite Resorts breached their contract. The credit card companies sided with them and denied the charges for the timeshare in Cancun. According to the lawsuit, which names Palace Elite Resorts and chief executive José Gibrán Chapur Dájer, the company incorrectly claimed that they had fraudulently disputed the charges as “unrecognizable.”
The Akeos were arrested March 4 at Cancun International Airport after arriving for a vacation at a different resort. They were accused of fraud and a judge ordered them detained pending trial, attorney John Manly told The Associated Press in April. They returned home April 3 following negotiations between U.S. and Mexican officials.
“The Akeos languished in a maximum security prison in Cancun, Mexico, separate and apart from each other, unable to speak with each other or console one another,” according to the lawsuit which was filed Friday in Miami-Dade County. “The prison conditions were horrific. The prison was overcrowded with violent criminals, the toilets didn’t flush, and the food was untouchable. Worse, they were scared, terrified, and frightened that they may never go home again.”
The Akeos say they were part of an unlimited referral program. Referrals that led to two-week stays by others at regular member prices allowed the couple to get an additional week for free.
Prosecutors in the state of Quintana Roo, where Cancun is located, said in a March 15 statement that the Akeos signed a contract with the Mexico-based hospitality group Palace Co. in November 2021 to buy a timeshare club membership at a resort in the Cancun area, but that the couple subsequently defrauded the hotel chain.
Prosecutors said the company received notices from the credit card companies that 13 transactions totaling $116,587 had been canceled, and the couple then shared on Facebook how they had conned the hotel group.
Manley said Christy Akeo did post on Facebook about their experience and how the charges were appealed to their credit card company, but that prosecutors had misrepresented the nature of her posts.
Social media posts about their imprisonment by Christy Akeo’s adult children — two-time national champion gymnast Lindsey Lemke Hull and Michael Lemke — gained the attention of U.S. Rep. Tom Barrett, a Republican from Lansing.
Barrett said he took it to the State Department and the White House. U.S. Consulate staff in Mexico and Barrett visited the couple in prison. The Akeos then went before a local judge and were released after they and the Palace Co. agreed to donate the disputed funds. Palace said $116,587.84 — the amount refunded to the Akeos — would be donated to a Mexican nonprofit benefitting orphans.
“When you are abroad, you are not as safe as you think you are,” Lemke Hull told the AP on Thursday, saying she doesn’t think her parents will ever return to Mexico.
She described their detention as “a nightmare out of a movie” and that it took several days for the family to even learn what was going on.
“They were given a bucket of water to, basically, splash on themselves to use as their shower,” Lemke Hull said. “But it was expected that the same bucket of water would be used to make the toilet work.”
The lawsuit says the CEO is based in Florida and Lemke Hall urged the Department of Justice to investigate.
The Palace Co. said Thursday in an email that it rejects all claims made in the Akeos’ lawsuit and will take it’s own “appropriate legal action.”
“The Akeos and the Palace Company fully resolved their disputes earlier this year,” the company said. “Mr. and Ms. Akeo have unfortunately proceeded with additional litigation against the Palace Company and affiliated entities and individuals in violation of the parties’ resolution of their disputes.”
