HOUSTON – A surrogacy scheme is affecting people desperate to be parents across the United States and it’s all tied to Houston-based Surrogacy Escrow Account Management, LLC, or SEAM, which a Harris County lawsuit accuses of stealing more than $10 million.
Intended parents have no idea what happened to the money for their surrogates and the owner of the company, Dominique Side, is now trying to “avoid having to face the clients she defrauded,” the lawsuit claims.
A spokesperson for the Houston Police Department told KPRC 2′s Bryce Newberry that the FBI has taken over an investigation.
The FBI would not confirm or deny the existence of an investigation which is standard for the agency but a spokesperson encouraged anyone to report potential federal violations at tips.fbi.gov or by calling their local FBI Field Office.
“We would really like to hear answers,” said intended parent Riane Woods of White Fish, Montana. “It’s super emotional, yeah, because we don’t know how we can move forward to have our own child at this point.”
Woods, who is not the plaintiff in the lawsuit but is another alleged victim, found out at 16 she wouldn’t be able to carry a child.
In her 30s, Woods froze her eggs, she said, and last November, put $62,000 in an escrow account with SEAM to pay for a surrogate’s expenses.
“This was money that my husband and I had really saved for, both of our mothers saved for this and donated money to our cause,” Woods said.
Earlier this month, she found out her surrogate stopped getting paid after receiving two emails from SEAM and Side, one of which expressed “significant issues” with a Capital One bank account.
According to the lawsuit, on June 14, SEAM clients received an email from Side which read: “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.
Side has erased social media accounts, deleted some business websites, and taken measures to conceal business activities of her other entities, the lawsuit alleges. Employees appear to no longer be employed.
“They did everything correctly and here comes a coward and takes the money and doesn’t explain herself,” said Houston attorney Lori Hood of Shackelford Law Firm. “We’re not talking about an inexpensive process. People save for years to be able to do this.”
Hood’s client, whose surrogate is 26 weeks pregnant, is now scrambling to pay for expenses.
"We’re at a time where she needs to go to the doctor more often and everything else and so now we’ve put the surrogate under stress because she doesn’t know she can go to the doctor’s appointments, and the health of the baby may be at risk,” Hood said.
The lawsuit Hood filed June 21 claims fraud and breach of contract, alleging that SEAM and Side defrauded clients by luring them into a fiduciary relationship in order to steal their escrow funds.
“The website has been scrubbed for contact information and everything else. I personally and persons that we have hired to find this woman cannot find her,” Hood said.
KPRC 2 reached out to Side more than a week ago but has not heard back.
Reporter Bryce Newberry knocked at the address listed in public records for Side, but a tenant said the previous renter moved out earlier this month.
“The sudden collapse of SEAM and actions taken by Dominique indicates that SEAM and Dominique may have been misappropriating the escrow funds for years in order to bankroll Dominique’s other business ventures and lavish lifestyle,” the lawsuit claims.
On Wednesday morning, KPRC 2 learned Side was served with the lawsuit at a home in Rosharon, Texas.
After filing the suit, a Harris County judge granted a temporary restraining order, which froze the company’s assets and any bank accounts belonging to Side and her business partner, which may hold escrow funds.
Lawyers have also subpoenaed bank records, but according to the lawsuit, SEAM’s escrow account with Capital One has no funds available and all of the intended parents’ escrow funds have been diverted to non-Capital One accounts.
“It’s incredibly evil. It’s despicable. It’s disgusting,” Michael Rodriguez, a third alleged victim from Asbury Park, New Jersey, told KPRC 2′s Bryce Newberry. “It just already adds scrutiny and distrust to a very sensitive issue where we already have so many challenges to become parents in general.”
He and his husband didn’t have any issues using SEAM, which came recommended through a nonprofit for LGBTQ+ couples to start families, for the birth of their first child.
After putting $50,000 in an escrow account with SEAM in January for the birth of their second child, he said they have run into problems.
"Everything was going smoothly up until the end of May. Our account showed that disbursements were made as usual, (the surrogate) was receiving them. And then we started to receive very suspicious emails,” Rodriguez said. “We want to make sure our surrogate is paid the money that we worked hard to protect and an escrow was entrusted to protect.”
Their surrogate is some 20 weeks into pregnancy and Rodriguez said this has added to the stress in what should be a joyful time.
“Having trusted the system, it’s complete betrayal,” he said.
As of this writing, Side has not been charged with any crime.
If you have been impacted by the alleged SEAM theft scheme, reach out to reporter Bryce Newberry at bnewberry@kprc.com.