HOUSTON – A surrogacy scheme is causing heartbreak for hopeful parents across the United States. At the center of the scandal is Houston-based Surrogacy Escrow Account Management, LLC (SEAM), accused in a Harris County lawsuit of stealing more than $10 million.
Intended parents are left in the dark about the funds meant for their surrogates, with the lawsuit alleging that SEAM’s owner, Dominique Side, is evading accountability. The Houston Police Department, represented by a spokesperson, informed KPRC 2’s Bryce Newberry that the FBI has taken over the investigation. Although the FBI neither confirmed nor denied the investigation, they urged anyone with information to report potential federal violations.
“We would really like to hear answers,” said Riane Woods of White Fish, Montana. “It’s super emotional because we don’t know how we can move forward to have our own child at this point.” Woods, who found out at 16 she couldn’t carry a child, froze her eggs in her 30s. Last November, she deposited $62,000 with SEAM to cover surrogate expenses, money saved by her and her husband, along with contributions from both of their mothers.
Earlier this month, Woods discovered her surrogate had stopped receiving payments after SEAM and Side sent emails indicating “significant issues” with a Capital One bank account. On June 14, SEAM clients received an email from Side stating, “Due to legal action all operations have been placed on hold. At this time, I am unable to provide further details regarding this matter.”
“Since then, we have not heard anything,” Woods said. The lawsuit claims Side has erased social media accounts, deleted business websites, and taken measures to conceal her other business activities. Employees appear to have been dismissed.
“They did everything correctly, and here comes a coward who takes the money and doesn’t explain herself,” said Houston attorney Lori Hood of Shackelford Law Firm. Hood’s client, whose surrogate is 26 weeks pregnant, is scrambling to cover expenses. “We’re at a time where she needs to go to the doctor more often, and now we’ve put the surrogate under stress because she doesn’t know if she can go to the doctor’s appointments, and the health of the baby may be at risk,” Hood said.
Filed on June 21, the lawsuit claims fraud and breach of contract, alleging that SEAM and Side defrauded clients by luring them into a fiduciary relationship to steal their escrow funds. “The website has been scrubbed for contact information. I and others hired to find this woman cannot locate her,” Hood added.
KPRC 2 reached out to Side more than a week ago but received no response. Reporter Bryce Newberry visited the address listed in public records for Side, only to find the previous tenant had moved out earlier this month.
“The sudden collapse of SEAM and actions taken by Dominique indicate that SEAM and Dominique may have been misappropriating the escrow funds for years to bankroll Dominique’s other business ventures and lavish lifestyle,” the lawsuit claims.
A Harris County judge granted a temporary restraining order, freezing SEAM’s assets and any bank accounts belonging to Side and her business partner. Lawyers subpoenaed bank records, but the lawsuit states SEAM’s escrow account with Capital One is empty, and all intended parents’ escrow funds have been diverted to non-Capital One accounts.
“It’s incredibly evil. It’s despicable. It’s disgusting,” said Michael Rodriguez, a third alleged victim from Asbury Park, New Jersey. “It adds scrutiny and distrust to a very sensitive issue where we already have so many challenges to become parents.”
Rodriguez and his husband had no issues using SEAM for the birth of their first child, recommended through a nonprofit for LGBTQ+ couples starting families. After depositing $50,000 with SEAM in January for their second child’s birth, they encountered problems. “Everything was going smoothly until the end of May. Our account showed disbursements as usual, but then we started to receive very suspicious emails,” Rodriguez said. “We want to make sure our surrogate is paid the money we worked hard to protect and an escrow was entrusted to safeguard.”
Their surrogate, now 20 weeks pregnant, is also affected. “Having trusted the system, it’s a complete betrayal,” Rodriguez said.
As of now, Dominique Side has not been charged with any crime.
