A recent Wall Street Journal article highlighted cases where families pursuing surrogacy in the US lost significant amounts of money due to mismanaged escrow accounts. These cases underscore a broader reality: surrogacy involves complex financial, legal, and emotional elements, and not all safeguards are as secure as they seem.
In the cases reported, intended parents entrusted large sums to Surrogacy Escrow Account Management (SEAM) that were meant to manage payments to surrogates, clinics, and medical providers. Unfortunately, the owner, Dominique Side allegedly misused or misappropriated funds, leaving families and the surrogates they hired in precarious positions. The consequences were immediate: delayed treatments, unpaid medical bills, and, in some cases, the emotional toll of having to pause or abandon the journey entirely.
Other people mentioned in the article are:
- Lillian Markowitz – a surrogacy agency owner who embezzled client funds for a yoga/flotation business.
- Darryl Kauffman – ran a surrogacy escrow business, used funds for personal expenses like bitcoin.
- Destiny Combs – accounting manager at IARC Surrogacy, stole $2.7 million for gambling.
- Eliseo Arebalos / International Reproductive Law Group – alleged misappropriation of escrow funds; investigation ongoing.
These examples highlight some key risks intended parents face:
- Escrow mismanagement: Not all accounts are heavily regulated, and some providers have mixed client funds with business or personal accounts.
- Vulnerability: One corrupt employee in a company can cause financial loss for many.
- Emotional and financial strain: Even temporary disruptions in payments or care can add stress at a critical time.
Finding people you can truly trust, whether escrow providers, agencies, clinics, or legal advisors, is one of the hardest parts of the journey. Intended parents have to navigate a myraid of providers and conflicting advice, all while managing enormous financial and emotional stakes. These challenges can make even the most prepared intended parents feel uncertain or exposed to risk.
Minimising Your Risks
While surrogacy carries real risks, there are concrete steps intended parents can take to protect themselves, their surrogates, and their journey. Understanding the potential pitfalls and planning ahead can make a complex process feel more manageable.
1. Only Engage with Escrow providers with a long track-record
Ask Growing Families, or a specialist US fertility attorney, to recommend trusted escrow providers. Be very careful of surrogacy agencies which manage escrow inhouse
2. Clarify contracts and expectations upfront
Contracts are only as strong as the systems that support them. Before transferring any funds, make sure you understand the terms for disbursement, coverage of medical expenses, and protections for surrogates.
3. Stay organized and track everything
Record-keeping is not just administrative—it’s protective. Keep copies of contracts, invoices, receipts, and communication with your agency, escrow provider, and clinic. Tracking payments and timelines helps you catch potential errors early and ensures everyone is on the same page. Digital tools or simple spreadsheets can be lifesavers when managing multiple moving parts.
4. Build a network of trusted advisors
Experienced reproductive lawyers, consultants, and other intended parents can provide guidance when choices aren’t clear-cut. Growing Families can assist with this.
5. Consider verification and standards-based guidance
At Growing Families, we’ve developed a verification process for clinics, agencies, and related surrogacy providers. While this is not a guarantee, it provides an additional layer of confidence that a provider meets high standards for transparency, professionalism, and sound practice. Combining verification with careful due diligence gives you a stronger safety net.
6. Plan for contingencies
Even with careful planning, things can go wrong. Consider options for backup funding, alternative providers, or legal support in case of delays or mismanagement. Preparing for the unexpected doesn’t mean expecting failure—it means ensuring your journey can continue safely even if challenges arise.
Taking these steps won’t remove all risk, but they give you control where you can have it. The financial, legal, and emotional stakes in surrogacy are high, but thoughtful preparation, vigilance, and trusted support can protect your family and help you focus on the most important part: bringing your child into a safe, loving environment.
If you’re considering surrogacy or have questions about your journey, don’t rely on what you see online. Reach out to us at Growing Families. We’re here to provide guidance, support, and answers every step of the way.
