CASE NUMBER:
INVESTIGATION FILE:
SUBJECT: COMPLAINT
COMPLAINANT: PALACE ELITE RESORTS S.A. DE C.V.
OFFENSE: FRAUD
TO THE PUBLIC PROSECUTOR
OF THE COMMON JURISDICTION ASSIGNED TO THE ATTORNEY GENERAL'S OFFICE OF THE STATE OF
QUINTANA ROO, NORTHERN ZONE
PRESENT.
KENIA ALEJANDRA CANCINO RAMIREZ, legal representative of the legal entity PALACE ELITE RESORTS SOCIEDAD
ANÓNIMA DE CAPITAL VARIABLE, whose legal standing is accredited by public deed number 2757, dated June 15, 2023,
granted before Licenciado Juan Macari Jorge, Notary Public Holder of Notary Public Number Twenty-Eight of the State
of Quintana Roo, a document for which I request its return and prior comparison and certification, attaching a simple copy for
such purposes. The legal domicile for receiving and responding to any kind of document and notifications is located at
Avenida Xel-ha, block 01 and 02, Lot 01, Local 5-J, Upper Floor of the Plaza Bonita Shopping Center, Superblock 28,
in this city, and with due respect, I appear to state the following:
By means of this written statement and based on the provisions of Articles 221 and 222 of the National Code of Criminal
Procedure, I hereby, on behalf of my represented entity, formally file a criminal complaint against PAUL K. AKEO and
CHRISTY LIN AKEO, both of U.S. nationality, for the offense of FRAUD, as set forth and sanctioned in Article 152 of the
current Penal Code of the State of Quintana Roo, committed to the detriment of my represented entity, the legal entity
PALACE ELITE RESORTS S.A. DE C.V., for which I present the following:
FACTS
FIRST: My represented entity, "PALACE ELITE RESORTS S.A. DE C.V.", is a legal entity duly constituted in accordance with
Mexican law, as evidenced by public deed number 387, dated November 28, 2011, granted before Licenciado Bernardo
Rivadeneira Pérez, Notary Public Holder of Notary Public Number 25 of the State of Yucatán, registered under electronic
commercial folio number 24074-2 in the Public Registry of Property and Commerce of the State of Quintana Roo, Cancun
Delegation. In Clause FOURTH of its corporate bylaws, its primary business purpose is established as the
commercialization, acquisition, or transfer by any means of rights to discounts on vacation or tourism packages of
all kinds, including the operation of vacation and entertainment clubs.
This corporate purpose was modified through public deed 82, dated March 3, 2012, also granted before Licenciado
Bernardo Rivadeneira Pérez, Notary Public Holder of Notary Public Number 25 of the State of Yucatán, registered under
electronic commercial folio number 24074-2 in the Public Registry of Property and Commerce. However, its primary
business activity remained the commercialization of rights to discounts on tourism services, an activity it has carried out
since its foundation. To fulfill this corporate purpose, it has sold membership rights commercially known as CLUB PALACE
ELITE, through which customers gain access to exclusive benefits and preferential pricing on the services offered by my
represented entity and its affiliates, in tourist resorts worldwide belonging to the Palace Resorts group.
That is to say, while Palace Resorts, the hotel group to which my represented entity belongs, is primarily dedicated to
promoting and selling tourism services, mainly vacation stays in its hotel complexes, it is also true that neither the
corporate purpose nor the business model of my represented entity involves the direct sale of such services, but
rather the sale of membership rights, which grant clients access to these services with preferential benefits.
SECOND: In fulfillment of its corporate purpose, on November 21, 2021, my represented entity entered into an agreement
with the investigated individuals CC.
PAUL K AKEO and CHRISTY LIN AKEO entered into a contract for the sale of membership rights (the "Contract"),
through which my represented entity sold the investigated individuals the membership rights to belong to Club Palace
Elite, thereby acquiring the membership category under affiliation number PE 4067152 (the "Affiliation"), which entitles
them to enjoy the benefits guaranteed by it.
In the second clause of the Contract, it was agreed that the investigated individuals, as holders of the Affiliation, obtained
the right to contract the services provided at any of the establishments specified in the Contract at a preferential
cost.
Emphasizing that the very Contract signed by the investigated individuals specifies that the sole purpose of executing the
agreement was to grant the buyer access to the benefits of the Affiliation, in exchange for the payment of the agreed
price for it, which is entirely consistent with the corporate purpose and primary business activity of my represented entity.
Additionally, various documents were attached to the said Contract, detailing the benefits obtained with the Affiliation,
as well as their scope. Among these annexes is the document containing the terms and conditions of the benefit
known as the "Referral Plus Program" (the "Referral Program").
THIRD. – In clauses seven, eight section c), and eleven of the Contract, the following is established:
"SEVENTH: Regarding industrial, intellectual, and real estate property; The persons specified in Annex A, including the
affiliate, **agree and acknowledge that: (...) (ii) the contract does not grant any right to use or enjoy any real estate property,
nor the right to occupy any real estate property, whether temporarily or permanently, nor the right to reproduce goods or other
assets (including registered trademarks and other types of intellectual property), concessions, equipment, or facilities of "THE
ESTABLISHMENTS", under any name or registered trademark, recognized and protected by the "Industrial Property Law",
which is why their use or reproduction is not authorized."
EIGHTH: Regarding the reasons for contract termination:
(CK - appears to indicate initials or a signature)
c) Due to the unauthorized or inappropriate application of the nature of this contract.
ELEVENTH: Regarding the contract.
This contract, along with annexes A and B on benefits in acquiring the Membership Rights, constitutes the entire agreement
between the parties regarding the subject matter and should be considered as a whole for purposes of its interpretation
and legal effects…
Additionally, the Referral Program granted to Affiliates states the following:
(...)
GENERAL TERMS AND CONDITIONS
(...)
The promotion of the Referral Program may not be broadcast or transmitted through any electronic means and/or of
any other nature.
It does not apply to groups or travel agents or to any person related to hotel marketing services.
Any improper or contrary use to the conditions specified in this document grants Palace Elite the right to suspend or
permanently terminate this promotion and the benefits derived from it, without any liability for Palace Elite.
(...)
These provisions were clearly known to the investigated individuals due to their own signatures on the multi-page
contract, and it is also evident that they were aware of the nature of the contract as stated in previous paragraphs. That is,
obtaining preferential rates and benefits on the products and services offered by Palace Resorts. The above was in
exchange for acquiring the Membership, so it would be illogical to interpret that the referrals could transfer the
benefits to third parties or transfer them after their use, as that would contradict the corporate purpose of my
represented entity, which is duly stated in the first clause of the Contract. Therefore, trying to establish a different
nature of the agreement is an attempt to distort the actual purpose of the contract, which is not its true essence.
FOURTH. – Thus, through a formal request sent via email on March 24, 2022, my represented entity notified the investigated
individuals of their breach of the provisions stated in clauses SEVENTH, EIGHTH, and ELEVENTH of the Contract,
consisting of:
(i) Publishing for profit and commercial purposes on websites, social networks, digital platforms, and mass media
communication platforms online, the preferential rate and benefits that were originally acquired for the Affiliates only.
(ii) Using, reproducing, and manipulating, directly and without authorization, for profit and commercial purposes on
websites, social networks, digital platforms, and mass media communication platforms online, the brands, logos,
typography, and commercial name owned by Palace Elite.
From these publications, it was evident that the investigated individuals were marketing the benefits they obtained upon
signing the Contract, which contradicts the agreed-upon terms. Additionally, the promotion of services was carried out
through mass digital broadcasting platforms, such as the social network "Facebook", which violates the terms of the
Referral Program, as explicitly stated in the agreement and transcribed in previous paragraphs.
For this reason, they were requested to cease these breaches, warning them that if they failed to comply, my represented
entity would take the corresponding legal actions, including the termination of the contract, based on Clause EIGHTH,
section (c) of the agreement.
FIFTH. – Later, on August 31 and November 4, 2022, my represented entity became aware, through the financial institution
American Express, of the notification of 13 chargebacks concerning 13 payments made to my represented entity. These
payments were made by the investigated individual Paul K. Akeo, due to 13 disputes he filed with American Express,
alleging that he did not recognize the charges made to his credit card with the financial institution. Consequently, an
investigation was initiated regarding the payments that were legitimately authorized in favor of my represented entity.
The payments, made in U.S. dollars, were as follows:
CONCEPTDATE RECEIVED AMOUNT
DISPUTE 1 08/31/2022 $6,923.48
| DISPUTE 2 | 08/31/2022 | $6,923.48 |
| DISPUTE 3 | 08/31/2022 | $6,923.48 |
| DISPUTE 4 | 08/31/2022 | $6,923.48 |
| DISPUTE 5 | 08/31/2023 | $6,923.48 |
| DISPUTE 6 | 08/31/2023 | $6,923.48 |
| DISPUTE 7 | 08/31/2023 | $6,923.48 |
| DISPUTE 8 | 08/31/2023 | $16,000.00 |
| DISPUTE 9 | 10/14/2022 | $9,200.00 |
| DISPUTE 10 | 10/14/2022 | $12,000.00 |
| DISPUTE 11 | 10/14/2022 | $15,000.00 |
| DISPUTE 12 | 10/25/2022 | $12,500.00 |
| DISPUTE 13 | 11/04/2022 | $2,200.00 |
| TOTAL: | $116,587.84 |
Chargebacks, in other words, represent a notification from the financial institution stating that certain payments previously
authorized in the account of the person who initiated the dispute (in this case, the investigated individual) will not be
processed.
According to the 13 notifications received, the disputes were initiated by Mr. Paul K. Akeo, who claimed that the products
or services charged to his credit card were never provided or received.
As a result, the financial institution reimbursed the disputed amounts to the investigated individual and did not settle those
funds to the merchant (my represented entity). Therefore, my represented entity ceased to receive the total disputed amount
of $116,587.84 USD (one hundred sixteen thousand five hundred eighty-seven dollars and eighty-four cents in U.S.
currency).
SIXTH. – Due to the above, my represented entity proceeded to verify whether the investigated individuals continued their
misconduct, which initially led to the March 24, 2022, warning mentioned in paragraph FOURTH of this document.
Upon conducting this review, it was discovered that the investigated individuals were not only publicly sharing the
benefits granted through the Affiliation Program on social networks but were also illegally selling those membership
benefits to third parties.
These third parties were not recognized by my represented entity as beneficiaries but were allowed to book stays in
Palace Resorts' establishments at exclusive member-only rates and access discounted services intended only for
members.
This practice violates the contractual agreements, as the benefits are strictly personal and cannot be transferred to the
general public (non-members).
SEVENTH. – Consequently, based on the above, my represented entity notified the investigated individuals via email,
stating...
Written on September 23, 2022, and in accordance with Clause Eighth of the multi-cited contract, the cancellation of the
Affiliation acquired by the investigated individuals under the Contract was declared.
Despite this notification, my represented entity, through publications observed on the Facebook social network, discovered
that the investigated individuals acquired the Affiliation from the outset with the intent of misusing it for
profit-making purposes, engaging in the resale of benefits.
This clearly goes against the intended purpose of the Affiliation, as their true intention was not to use the membership in
accordance with the contract, but rather to deceive the company.
By accepting the terms and conditions outlined in the contract, they falsely presented themselves as legitimate
members with exclusive usage rights, as stipulated in the very nature of the contract.
However, in reality, they used their membership status to conduct unauthorized resale of benefits, causing financial
harm to my represented entity. The company does not offer preferential rates to the general public, but exclusively
through the purchase of an Affiliation.
EIGHTH. – To strengthen this argument, it is necessary to delve into the legal definition of fraud to explain why the
described actions constitute a criminal offense.
It is important to clarify that not all fraudulent conduct qualifies as a criminal offense. However, the Federal Judiciary
has established a distinction between civil fraud and criminal fraud:
● Civil fraud occurs when the primary objective is to seek financial compensation for damages suffered.
● Criminal fraud occurs when the perpetrator seeks to deceive society at large, taking advantage of people's good
faith, and the goal is not only to obtain financial redress but also to impose a public penalty as a preventative
measure against future misconduct.
Thus, the crime of fraud is committed when deception is used to wrongfully obtain a good or an unlawful financial
benefit.
The key element of fraud is that deception overcomes the resistance of the victim, causing them to act based on false
or misleading information.
In this regard, Article 152 of the Criminal Code for the State of Quintana Roo states:
ARTICLE 152 – The crime of fraud is committed by anyone who, by deceiving another person or taking advantage of their
error, obtains something that does not belong to them or gains an undue profit for themselves or another.
Furthermore, the highest Tribunal of the Federation has established that all fraud cases share common elements, including
financial harm to the passive subject (the victim), which must be caused by the perpetrator's actions through
deception or similar means. The intended outcome of fraud is to obtain an unlawful profit or enrichment, which is the direct
result of the fraudulent act. This is further explained in the ruling by the First Chamber, with the corresponding references
detailed below:
Supreme Court of Justice of the Nation
● Digital Record: 809421
● Instance: First Chamber
● Period: Fifth Era
● Subject(s): Criminal Law
● Source: Judicial Weekly of the Federation, Volume XXXVIII, Page 983
● Type: Isolated Decision
FRAUD, CONSTITUTIVE ELEMENTS OF
The First Chamber of the Supreme Court of Justice, interpreting Article 413 of the 1871 Penal Code for the Federal
District, has established the doctrine regarding fraud.
Unless expressly stated otherwise in specific cases, all necessary elements of fraud must be met as defined in the law.
One of these essential elements is that fraud must cause harm to the victim, who must have been misled or in error—not
just any person.
Additionally, the deception must result in the perpetrator receiving an unlawful benefit. This deception must be the
direct and necessary cause of the victim's error.
The terms of Article 386, Section I of the current Penal Code for the Federal District confirm this interpretation, as it aligns
with the legal definition of fraud.
Even the 1871 Penal Code (which remains applicable in certain cases) established deception and undue profit as
fundamental elements of fraud, requiring their concurrence for the offense to exist.
…it is undeniable that the thesis upheld by the First Chamber of the Supreme Court of Justice is applicable to what is
referred to as the crime of fraud under the current Penal Code.
Criminal appeal in review 14699/32. Betancourt Gregorio.
June 10, 1933. Unanimous decision of five votes. The publication does not mention the name of the reporting judge.
Now, in this case, the investigated individuals, as a result of negotiations carried out for the purchase of the Affiliation,
which grants exclusive benefits to its members for obtaining tourism services at preferential rates, instead of using
these benefits themselves, sold them to third parties. They misrepresented the process by making it seem as though
these third parties were entitled to the benefits through their Affiliation, thus deceiving my client to obtain discounts
and preferential pricing, which led to illegitimately reselling the services at a higher price to third parties. As a result, my
client suffered financial damages, which aligns with the legal definition of fraud.
In addition to the above, intentional deception by the investigated individuals can be observed in the following:
By acquiring the Affiliation, they authorized that partial payments for the purchase be charged to a credit card issued
by the financial institution American Express under the name of the investigated individual, Paul K. Akeo.
However, once the benefits were received, the individual later notified American Express that they were unaware of the
charge and, under the pretense of non-compliance, filed a dispute with American Express.
Falsely claiming that the product or service had never been received, they requested a chargeback after already having
used the Affiliation benefits.
Since the notification was sent before the benefits could be revoked, the financial institution ultimately reimbursed the
disputed amount, refusing to settle payments made by the investigated individuals.
As a result, $116,587.84 USD (one hundred sixteen thousand five hundred eighty-seven dollars and eighty-four cents) was
lost by my client, with no proof of any legitimate claim from the investigated individuals.
This demonstrates fraudulent intent, as they benefited from the Affiliation and knowingly engaged in deception to
obtain an undue profit. From the very beginning, they entered the contract with the intent to defraud, making this an
intentional scheme that constitutes criminal fraud.
REQUEST FOR INVESTIGATIVE ACTIONS
Based on Section II, subsection C of Article 20 of the Constitution and Section XVII of Article 109 of the National Code of
Criminal Procedure, I hereby request, for the clarification of the facts, that the following investigative actions be carried out:
1. An official request should be sent to the Ministerial Police Investigation Directorate, requesting that they:
i. Locate, identify, and interview the victim, who can be contacted via phone number 9981032511, in order to verify
the circumstances of how, when, and where the events occurred, identify the perpetrators and/or accomplices if
applicable, obtain information on potential witnesses, and in general, collect any information deemed relevant to
clarifying the facts.
ii. Conduct a search on Plataforma México regarding the investigated individuals PAUL K. AKEO and CHISTY LIN
AKEO to include their criminal records in the investigation. The information retrieved will be used for their localization
and identification.
2. An official request should be sent to the National Institute of Migration to provide the immigration status of the
investigated individuals, as well as their entry and exit records from the country during the period from November
21, 2021, to the present.
ANNEXES
Based on Section XIV of Article 109 of the National Code of Criminal Procedure, I attach to this document supporting data
taken from official records to substantiate a request for the linkage to the criminal process of the investigated individuals,
specifically, the following:
Footnotes:
1. Article 109 – Rights of the victim or offended party. In the criminal proceedings provided in this Code, the victim or
offended party shall have the following rights:
○ IV. To request investigative actions that they deem necessary, unless the Public Prosecutor's Office
considers them irrelevant or unfounded and provides justification.
○ VI. To have a free legal advisor at any stage of the proceedings, in accordance with applicable regulations.
PUBLIC DOCUMENTATION
1. PUBLIC DOCUMENT consisting of public deed number 2747, dated June 15, 2023, issued before Lic. Juan Macari
Jorge, Notary Public number 28 in the State of Quintana Roo. This document contains the general power of
attorney granted to the legal representative to appear before the public prosecutor’s office and file complaints
regarding the facts described in this document.
2. PUBLIC DOCUMENT consisting of the articles of incorporation of my represented entity, recorded in deed number
387, dated November 28, 2011, issued before Lic. Bernardo M. Rivadeneira Pérez, Notary Public number 29 in the
State of Quintana Roo.
3. PUBLIC DOCUMENT consisting of the protocolization of a general assembly act, where my represented entity
ratified its corporate purpose. This was recorded in deed number 82, dated March 3, 2012, before Lic. Bernardo M.
Rivadeneira Pérez, Notary Public number 29 in the State of Quintana Roo.
PRIVATE DOCUMENTATION
4. PRIVATE DOCUMENT consisting of a written demand, dated March 10, 2022, issued by Isaac Carrasco, legal
representative of PALACE ELITE, and addressed to the investigated individuals.
5. PRIVATE DOCUMENT consisting of the membership contract, dated November 21, 2021, signed between my
represented entity and the investigated individuals PAUL K. AKEO and CHISTY LIN AKEO. This contract established
that by joining Club Palace Elite, they would acquire exclusive membership benefits, classified under membership
number PE 40612.
6. PRIVATE DOCUMENT consisting of 13 chargeback notifications issued by AMERICAN EXPRESS, detailing the
following chargeback amounts and dates:
a. 7 chargeback notifications, dated October 5, 2022, each for $6,923.48 USD.
b. 1 chargeback notification, dated September 6, 2022, for $16,000.00 USD.
c. 1 chargeback notification, dated October 23, 2022, for $6,923.48 USD.
d. 1 chargeback notification, dated October 14, 2022, for $15,000.00 USD.
Translation of the Text in the Image
PRIVATE DOCUMENTATION (Continued)
e. Chargeback notification dated October 22, 2022, for an amount of $12,000.00 USD.
f. Chargeback notification dated October 25, 2022, for an amount of $16,000.00 USD.
g. Chargeback notification dated November 4, 2022, for an amount of $2,200.00 USD.
7. PUBLIC DOCUMENT consisting of three printed copies of publications made through the social media platform
Facebook.
8. PUBLIC DOCUMENT consisting of a copy of the official identification of the undersigned.
9. PUBLIC DOCUMENT consisting of copies of the professional licenses of Lic. Manuel Alejandro Urtecho
Delgado and Lic. Marco Antonio Trujeque Hernández, both issued by the Secretariat of Public Education.
APPOINTMENT OF LEGAL ADVISORS
Pursuant to Section VII of Article 109 of the National Code of Criminal Procedure, I hereby appoint as legal advisors for
my represented entity:
● Attorney Manuel Alejandro Urtecho Delgado, with professional license number 9187317.
● Attorney Marco Antonio Trujeque Hernández, with professional license number 12989298.
I commit to ensuring their personal representation to take legal action.
REQUEST TO THE PUBLIC PROSECUTOR
For the aforementioned reasons, I respectfully request the Public Prosecutor:
1. To acknowledge receipt of this formal complaint regarding the crime of fraud committed against my entity,
"PALACE ELITE RESORTS S.A. DE C.V.," and to initiate the corresponding investigations.
2. To carry out the requested investigative actions as well as any other actions the legal representation may deem
necessary to clarify the facts.
3. Once the legal requirements outlined in Article 16 of the Constitution are met, to initiate the corresponding
legal action.
"... against the persons indicated, for their responsibility in the commission of the crime previously mentioned and committed
to the detriment of my client."
I PROTEST WHAT IS NECESSARY.
Cancún, Quintana Roo, on the date of its presentation.
(Signature)
KENIA ALEJANDRA CANCINO RAMÍREZ
Legal Representative of the legal entity
"PALACE ELITE RESORTS S.A. DE C.V."
