Just returned from Avalon Grand Cancun & I have been trying to determine the legal entity that owns this hotel. I've read about Michael Kelly being the owner...who is currently in prison, but can't seem to specifically find the type of ownership he has of this hotel. I can't believe he owns it personally rather than thru some kind of Mexican company. Any help is appreciated.
I agree that I am sure the ownership is not in his own name--probably no hotel is owned by any one person--on paper--which is the legal part after all. Probably it is owned by a Mexican company of which he may be owner or stockholder. Following is my translation of an article on Feb. 15, 2008: "(When I passed by the other day I saw them making some changes and painting and wondered if this is what was happening. Again, my translation of the article in Por Esto today.) "The City Disco for Sale for $25 MD Friday, 15 february 2008 * The Only way for the Head of the Consortium, Michael Eugene Kelly Hodgson, to get out of jail on probation * They also are offering 2 hotels in Quintana Roo and the one in Acapulco * Guilty Plea * By Gerardo Reynoso The Kelly Group has placed the 2 hotels in Quintana Roo, the one in Acapulco and The City night club up for sale for around $280 million dollars in order to raise parte of the indemnization that the U.S. government is asking for in order to authorize probation to the head of the consortium, Michael Eugene Kelly Hodgson. The last reports on the case indicate that the properties belonging to the Group have been put up for sale to try and find potential buyers within the next 3 weeks. To do this, the Kelly Group, according to an official source of the Avalon company, has been doing a series of appraisals on the buildings that they manage for the last two weeks in order to be able to guarantee the $420 million dollars needed for the indemnization. And this is Michales Kelly's defense strategy since May of 2007 to offer to cover the debt caused by the fraud committed in the sale of timeshares. Since then they have been researching plans to raise enough money to convince the U.S. government to accept the indemnization proposal. And with this they began working with the objective of obtaining real numbers in Mexico as well as Panama in order to determine a quantity to present up front as a sample of financial liquidity. The property appraisals have been completed as part of this operation. According to information obtained, the Kelly group is asking $80 million for the Avalon Hotel in Cancun. They are also asking $25 million dollars for The City night club in the middle of the Cancun hotel zone, $75 million dollars for the Excalibur Hotel in Acapulco and around $70 million dollars for the Avalon on Isla mujeres. The total for the sale of these properties (if they get what they ask for) would be approximately $250 million dollars, an ideal amount as the first financial package to present to the Court in Chicago, Illinois. This first financial package would mean that the Kelly Group would be demonstrating economic liquidity outside of the United States in order to convince the government of that country that the money used to pay back the fraud at this time would be from foreign capital. This point is critical since it is the principal requirement of the American government in order to be able to accept the Kelly Group's proposal for the indemnization plan and with it, the proposal for the guilty plea."
I am a criminal defense attorney in Chicago. Given my knowledge of the Federal Sentencing Guidelines and my contact with the criminal justice system, it seems unlikely that this guy will get probation. The amount of the thefts and the nature of his involvement will dictate his potential sentence under the Guidelines. He is looking at a substantial prison sentence. On the other hand, perhaps he is cooperating with the Government and is providing them with assistance in the prosecution of others. But even given that, it will be difficult for him to get Probation.
From everything I have read, he will get probation or he won't pay the money back. Everything I have read says that. The U.S. govenrment can't go into Mexico and take his assets because they are, I am sure, well sheltered. He wants out and the people he allegedly defrauded want their money back. I guess he could just stay in jail and go back when he gets out and not pay anything. Others have done it before. And plea bargains are more common than not. we will see.
