Surrogacy Escrow Account Management (SEAM), a Houston-based escrow account company, has been fined $1 million in damages over alleged improper management of parents' funds.
The former owner of the organization, which was responsible for overseeing transactions between intended parents and surrogates, was ordered to pay the fine. Dominique Side was originally sued in 2024 after she was accused of taking more than $16 million from prospective parents.
Surrogacy Company Fined $1 Million in Damages
The lawsuit, which was filed on behalf of more than 30 individuals, claimed that the former owner of the surrogacy company used the funds for her own lavish lifestyle. These include paying for luxury travel, a clothing line, and an R&B music career.
Court records showed that Side was ordered to pay the families affected a total of $1,045,158 in damages. Additionally, documents showed that there was no legal representation for the former surrogacy company owner.
Prospective parents are encouraged to hire a third-party escrow agent to manage their money to make sure that payments to the surrogate arrive in full and on time. This is primarily because surrogacy is not normally covered by insurance, according to the Houston Chronicle.
Authorities said hundreds of intended parents across the United States put their trust in SEAM for the management of their money that was saved to cover the cost of surrogacy. This comes as medical, legal, and administrative costs can reach up to $195,000 for intended parents.
Court filings showed that the former owner of SEAM spent $2.2 million of the intended parents' escrow funds to pay for her career as a singer and producer. The company also used $6.2 million of the funds to pay for a music production business known as Vgn Bae Studios.
Mismanagement of Parents' Funds
When the Federal Bureau of Investigation (FBI) launched an investigation into SEAM and Side, the company's bank records were obtained, which revealed fraudulent financial activities. The case affected Christena Doan, a surrogate from Indiana who recalled the time when payments from SEAM suddenly stopped coming, Fox26 Houston reported.
She recalled the anxiety and stress she felt at that moment, as they had no idea what they were going to do moving forward. Doan was carrying a baby girl for intended parents Arielle Mitton and her husband.
Another couple affected by the incident was from Georgia, Jenna and Roy Copeland, who had several miscarriages and unsuccessful attempts at in vitro fertilization (IVF). They then decided to invest thousands of dollars into SEAM to fund their surrogate's prenatal medical expenses.
However, days before they were set to celebrate the gender reveal of their surrogate child to their family and friends, they discovered the SEAM was shutting down. They found out that about $40,000 of their money just disappeared, as per ABC News.