FBI probing Houston surrogacy escrow company
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Several North Texas families say they each lost thousands of dollars in an alleged scam involving a Houston-based surrogacy escrow company.
Why it matters: The FBI is now trying to identify all potential victims in the case, a spokesperson tells Axios.
The big picture: A lawsuit accuses Surrogacy Escrow Account Management (SEAM) and its owner of misappropriating more than $10 million from families. Damages alleged in the lawsuit range from $10,000 to $109,000 for 35 families.
- SEAM owner Dominique Side is accused of using the money to fund other ventures, including a music career, real estate investments and a clothing line, per the complaint.
The other side: Side didn't appear at a court hearing last month, per ABC13.
- An automated message on the SEAM phone line says Side's counsel advised her not to respond to any inquiries because her company was notified about a federal investigation.
How it worked: Court filings say SEAM allowed families to create escrow accounts for their surrogates, paying the surrogates and their bills as a third party.
- The company was supposed to review expenses incurred by the surrogate and distribute payments to them with authorization from the would-be parents, per court filings.
Zoom in: A Coppell couple is claiming $39,000 in damages, including the money they lost and their legal fees. A Frisco couple is claiming $44,000 in damages and a Dallas family is claiming $55,000.
- John and Katie Lynch, of Dallas, aren't listed in the lawsuit but told NBC5 that they lost $6,000 from their escrow account for their surrogate.
- Some couples have had to work extra hours or host fundraisers to cover their losses and pay their surrogates, per FOX26.
What they're saying: Side's business partner, Anthony Hall, said in a court affidavit that he had no prior knowledge of the alleged fraud because Side handled all of the finances.
- "I hate what happened to the plaintiffs and would never wish this nightmare on them or anyone and at the end of all this I hope their money is restored," the affidavit says.
What's next: The FBI is asking anyone who lost money in the case to share their experience to help their investigation.