Hundreds of hopeful parents are facing a distressing situation due to a surrogacy money scandal that has unfolded recently.
Many of these individuals are dealing with infertility or medical challenges, relying on surrogacy as their pathway to starting or expanding their families.
They entrusted tens of thousands of dollars to an escrow company in Texas to cover the costs associated with a surrogate carrying their child. Now, however, their funds are in jeopardy, prompting an FBI investigation to identify potential victims.
Across New Jersey, New York, and even the West Coast, six couples have come forward with similar tales of placing their trust in a company accused of mishandling over $10 million.
Laura Daniels and Christopher Cheng, celebrating the arrival of their son Koda on Roosevelt Island, are among those affected. Facing medical obstacles, they opted for a surrogate, a decision that came with significant financial strain.
“We’re talking about their compensation, plus 50 percent, plus 100 percent depending on the agreement. So we’re talking about $100,000 sitting in this account,” Daniels explained.
Their confidence in the safety of their funds was shattered when their surrogate informed them weeks ago that she hadn’t received her initial payments, Cheng disclosed. Now, they fear over $10,000 is missing from their account.
Meanwhile, on Long Island, another woman is grappling with the disappearance of $28,000 earmarked for her surrogate.
The money was entrusted to Surrogacy Escrow Account Management LLC (SEAM), based in Houston, Texas, which has operated for a decade, offering what industry experts describe as a standard service in surrogacy.
Jarret Zafran, a surrogacy agency owner in New York, emphasized the importance of such services as a safeguard for both intended parents and surrogates.
“It’s a protection for both sides, transparency for intended parents to make sure money is really there to cover obligations to the surrogate,” Zafran noted.
SEAM’s owner, Dominique Side, herself a former surrogate, reassured clients on the company’s website that their funds were secure. However, a lawsuit filed in Texas alleges that up to $10 million was unlawfully siphoned from 600 escrow accounts worldwide.
Attorney Lori Hood, representing one of the affected parents, highlighted the financial strain placed on these families who are contractually obligated to cover their surrogate’s expenses.
“You have parents that are obligated under the contract to pay for the expenses for the surrogates. And so these parents are having to come up with alternate means to pay for this contract and these funds, and a lot of them just don’t have it,” Hood explained.
The lawsuit contends that SEAM may have misused escrow funds for years to fund Side’s other business ventures and extravagant lifestyle, including six-figure cash loans.
Despite the allegations, Side declined to comment, citing an ongoing federal investigation into her and SEAM.
The FBI, actively seeking other victims, encourages individuals across the country to provide information through an online form.
For Jennifer and others in similar situations, the focus remains on recovering their funds and seeking justice through the legal system.
As Daniels and Cheng hold their newborn on Roosevelt Island, they, too, await answers, hoping for resolution not just for themselves but for all affected parents.
“We’re fortunate that we have our baby in hand. That’s the most disturbing thing, is that she’s impacting families and generations of people,” Daniels lamented.
A Harris County judge has frozen SEAM’s and Side’s accounts, while complaints have been lodged with the attorneys general of Texas and New York, and lawsuits filed by financial lenders in New York against Side and SEAM.
