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Published on January 24, 2025
San Diego Surrogacy Firm Owner Pleads Guilty to Embezzling Client FundsSource: Google Street View

In a federal court admission, Lillian Arielle Markowitz, the former proprietor of three surrogacy consulting firms based in San Diego, pleaded guilty to fraud charges for embezzling substantial sums from her clients' escrow accounts, the U.S. Attorney's Office in San Diego stated yesterday.

Markowitz owned My Donor Cycle, Surrogacy Beyond Borders, and Expecting Surrogacy, where she offered services to individuals longing to become parents through surrogacy but, starting in 2018, financial issues led her to pilfer client funds using fraudulent escrow disbursement requests, one even featuring a forged client signature, which she used to collect funds without the client's consent and according to her plea, she began misleading nine additional clients from January 2019 through May 2021, about the destination and use of their funds.

According to the U.S. Attorney's Office, her plea agreement detailed an admission that she deposited her clients' funds directly into her business checking account, using those funds not only for general business costs and her spending but also to cover expenses for other clients' surrogacy ventures.

U.S. Attorney Tara McGrath noted, "The path to parenthood through surrogacy can be fraught with emotional and financial challenges," yet Markowitz exploited her vulnerable clients instead of guiding them. FBI San Diego Special Agent in Charge Stacey Moy emphasized the betrayal and deception the clients faced from someone they trusted, "FBI will continue to investigate these unique fraud schemes to protect the public against those who employ empty promises and prey upon vulnerable individuals," she explained, as per the U.S. Attorney's Office.

Those who suspect they may have been victimized in this matter should contact the FBI San Diego field office. The defendant is currently scheduled for sentencing on April 11. Meanwhile, the U.S. Attorney's Office has committed to restitution of at least $389,142.00 for the victims, with Special Assistant United States Attorney Jeffrey D. Hill and Assistant U.S. Attorney Mark W. Pletcher spearheading the legal proceedings.