Families Accuse Surrogacy Escrow Company of Embezzling Millions

Families Accuse Surrogacy Escrow Company of Embezzling Millions

Jenna and Roy Copeland had big plans for the first Saturday of summer.

The Georgia couple had organized a gender reveal party for their first child, a baby girl being carried by a surrogate in a neighboring state.

After multiple miscarriages and unsuccessful attempts at in-vitro fertilization, the Copelands opted for surrogacy and placed tens of thousands of dollars with Surrogacy Escrow Account Management (“SEAM”), a Texas-based company, to facilitate payment of their surrogate’s prenatal medical expenses.

Watch ABC News’ “Nightline” tonight at 12:35 a.m. ET for full coverage of this story.

But eight days before they were set to celebrate the gender reveal with family and friends, they learned that the company holding their funds was shutting down. Almost $40,000 of their money was apparently gone.

“Little did we know that the following week was going to be filled with reaching out to law enforcement, to attorneys — instead of being excited and getting prepared for our gender reveal party,” Jenna told ABC News.

“To have this kind of cloud over us was bad, terrible timing,” Roy said.

The Copelands soon learned that they were far from alone.

‘Just in shock’

Hundreds of SEAM’s clients from across the U.S. and Europe have discovered the money they’d deposited into escrow accounts has seemingly vanished, according to a lawsuit filed against the company and its sole owner, Dominique Side.

In a joint investigation, ABC News and its owned television stations interviewed impacted families and surrogates from half a dozen cities coast to coast.

Sarah and Corey Soileau of Baltimore were getting prepared for an embryo transfer with a surrogate when they learned that nearly $55,000 they deposited with SEAM was apparently missing.

“We were just in shock, disbelief,” Sarah said. “It’s kind of like a numb feeling.”

North Carolina couple Chris and Chen Perkins Yan learned in an email from SEAM’s owner that the $70,000 they paid to cover their surrogate’s medical expenses was likely lost.

Jenna and Roy Copeland are seen examining sonogram photos of their baby as carried by their surrogate, July 2024.

ABC News

“We sent the money and she walked away with it,” Chris said.

The damages incurred so far by families are allegedly in excess of $10 million, according to court records. The FBI in Houston has opened an investigation and has issued a public appeal for other potential victims to contact the agency.

“What has really affected me in this case is that each time a new intended parent calls in and talks to me about their case, it’s not just about the money,” said Marianne Robak, a Houston attorney who represents about 30 families in a legal action against SEAM. “It’s about their family’s future. It’s about their hope. It’s about their ability to have children.”

‘We’ll Handle The Money’

Side, 44, has described herself as a “serial entrepreneur” who established “several multimillion-dollar businesses in the Houston area,” according to an interview Side gave to Voyage Houston Magazine in 2022.

On the website of SEAM, the company’s credo — “We’ll Handle The Money. You Handle What Matters” — is prominently displayed. Side’s bio, which is no longer accessible on the site, describes her as a former surrogate who saw SEAM “as a chance to help hundreds of people create the families they wanted — way more than she could through surrogacy alone.”

In addition to her role as CEO and owner of SEAM, Side is a musical performer and has launched more than dozen other business ventures, according to corporation records in Texas and California. Her companies past and present have included a private alternative school, a vegan grocery store, a vegan fashion line, a property company and a music production studio.

Now she stands accused of funneling millions of dollars from her clients’ escrow funds into those other businesses, and allegedly using the funds to purchase designer clothing and luxury vehicles, according to court records.

Side also allegedly used client funds to purchase multiple properties in Houston and a custom home in New Orleans.

Kevin Ozebek, an investigative reporter with ABC’s Houston station KTRK, visited the New Orleans home earlier this month in search of Side. A woman who identified herself as Side’s mother said her daughter was “having a hard time with everything.”

“She’s trying to deal with this all herself, and that’s all,” said Caron Parks-Hinton. She declined to discuss her daughter’s whereabouts or the allegations she is facing.

Caron Parks-Hinton, mother of SEAM CEO Dominique Side, is interviewed by KTRK investigative reporter Kevin Ozebek, July 2024.

ABC station KTRK

‘My sincerest apologies’

Side has not appeared at court hearings in the legal actions against her, and it is not known if she has retained an attorney. She did not respond to multiple attempts by ABC News to contact her regarding the allegations.

Phone calls and emails to SEAM are met with the same automated response as emails and calls made to Side.

“My sincerest apologies for the non-responsiveness,” the message says. “My company and I have been notified that we are subject to an active investigation by federal authorities. Under advice of counsel, I am not permitted to respond to any inquiries regarding the investigation.”

Jenna and Roy Copeland say they’ve been forced to tap into their retirement accounts to continue paying their surrogate’s expenses.

“To have to pull these funds out is a big hindrance,” Roy said.

They say they are trying to focus on preparing for the arrival of their daughter, but the shock of possibly losing their escrow funds will take some time to subside.

“This lady needs to be brought to justice and we need to get our money back so that we can continue this journey and make sure that our baby has everything she needs,” Roy said. “Now and in the future.”

ABC Owned Television Stations KGO in San Francisco, KTRK in Houston, WABC in New York and WTVD in Raleigh contributed to this report.

Surrogacy has become an increasingly popular option for couples who are unable to conceive a child on their own. However, recent reports have shed light on a disturbing trend in the surrogacy industry – embezzlement by surrogacy escrow companies.

In a surrogacy arrangement, a surrogate mother carries a child for intended parents who are unable to do so themselves. The intended parents typically pay a fee to a surrogacy agency, which then manages the financial transactions between the parties involved. This includes paying the surrogate mother for her services, as well as covering medical expenses and other related costs.

However, several families have come forward with allegations that a surrogacy escrow company, which was supposed to be holding their funds in trust, has embezzled millions of dollars. These families claim that the company failed to make payments to the surrogate mothers, leaving them in financial distress and jeopardizing their surrogacy agreements.

The families involved in these cases have been left devastated by the alleged embezzlement, as they have not only lost significant amounts of money but also face uncertainty about the future of their surrogacy arrangements. Many of them have had to scramble to find alternative means of funding their surrogacy journeys, while others have been forced to put their dreams of starting a family on hold indefinitely.

The implications of this embezzlement scandal are far-reaching, as it raises serious questions about the regulation and oversight of surrogacy escrow companies. Many families who turn to surrogacy do so out of desperation, after exhausting all other options for starting a family. To have their hopes dashed by unscrupulous individuals who exploit their vulnerability is truly heartbreaking.

In response to these allegations, authorities are investigating the surrogacy escrow company in question and working to hold those responsible for the embezzlement accountable. In the meantime, families who have been affected by this scandal are left to pick up the pieces and try to salvage their surrogacy arrangements.

This case serves as a cautionary tale for anyone considering surrogacy as a means of starting a family. It underscores the importance of thoroughly vetting surrogacy agencies and escrow companies before entering into any agreements, as well as ensuring that proper safeguards are in place to protect the funds entrusted to these entities.

Ultimately, the families affected by this embezzlement scandal deserve justice and restitution for the harm that has been done to them. It is our hope that this case will lead to greater transparency and accountability in the surrogacy industry, so that other families can avoid falling victim to similar schemes in the future.