HOUSTON – A temporary injunction has been granted by a judge in a lawsuit against Surrogacy Escrow Account Management LLC, also known as SEAM, and it’s owner, Dominique Side.
The company and Side are accused of misappropriating millions of dollars meant for intended parents to pay surrogates. Records allege the missing money was misappropriated and was being used to fund Side’s rap career and lavish lifestyle.
The injunction will ensure temporarily-frozen assets that have come out of SEAM’s accounts will remain frozen until the end of the investigation,
“We are satisfied that the court granted our injunction, and we are confident that the families are grateful as well. This is an important step for our legal team as we fight to help those affected by this scheme receive the recovery and answers they deserve. We will continue to investigate where the money went and the best course of action to hold the defendants accountable for their deceitful actions.” said attorney Marianne Robak
In a presentation before a judge Wednesday, forensic analysis of bank records were shown which found more than $10 million of escrow money got funneled to other businesses, Side herself, as well as Side’s business partners.
Side’s main business partner, Anthony Hall, was the only person named in the lawsuit to appear before the judge Wednesday. Hall did not have any legal representation because he said his funds have already been frozen and have been since a temporary restraining order was granted. He says the funds were frozen while he was on a flight to Virginia and when he arrived, he couldn’t even order an Uber.
Hall claimed to the judge that he is a victim in the case too and that he did not know where the money was coming from even though he allegedly benefited from the money. He offered to help with the investigation and any assets involved in the lawsuit under his name would be frozen and then eventually be used to repay victims, according to attorneys.
“Our hope at the end of this is to get a final judgment for our client’s claims, for breach of contract, for fraudulent transfer, and for unjust enrichment, and put those funds in what’s called a construct of trust for the benefit of the creditors, which would be the intended parents,” said Robak. “Once those are put into a constructive trust by the court, then we will work towards recovery, towards disbursing those funds to the intended parents and back into their accounts.”
Side did not appear in court. Hall said he last spoke with her two days ago, asking her how she was doing and in a previous conversation learned she wouldn’t be at the hearing. Hall said she had told him about the mismanagement of funds issue with SEAM when she stepped down from the music studio, Vgn Bae Music Group, where more than $6.2 million of the intended parents’ escrow funds were transferred to from SEAM’s accounts, according to records. After Side stepped down from the studio, she turned it over to Hall and then he changed the business name.
“She told me that there were some issues with some of the funds. And for me, doing the right thing was making sure that she owned and was accountable,” Hall told the judge Wednesday.
Side also allegedly told Hall that she had reported herself to the FBI, but that claim has not been verified.
Side and SEAM have been under scrutiny for weeks as families across the country and the world accuse Side and the company of stealing funds meant to pay surrogates. An amended lawsuit was filed late Monday in Harris County which first raised the allegations of the misappropriation of funds being used by Side to pay for her rap career.
On Tuesday, KPRC 2 learned an additional 23 families from across the country as well as one each from France and Italy filed to join the lawsuit against SEAM and Side, claiming combined losses of just over $1 million.
A second lawsuit was filed late Friday in Harris County by a different Houston attorney, Cody Dumas, on behalf of an alleged victim from Dallas. Dumas told KPRC 2′s Bryce Newberry his firm has been in touch with nearly 100 alleged victims from across the country, including some in France and Asia.
If you’ve been impacted by SEAM, the FBI is still asking for any information to be submitted using this online form.
KPRC 2′s Bryce Newberry has been covering this case since it first began. If you’ve been impacted, feel free to reach out to him via email.