Former San Diego surrogacy consultant Lillian Arielle Markowitz was sentenced to 24 months in prison for defrauding her clients. Markowitz, who operated My Donor Cycle, Surrogacy Beyond Borders, and Expecting Surrogacy, started her scheme in 2018 as her businesses fell into financial difficulties, leading her to misappropriate hundreds of thousands of dollars intended to help clients with the surrogacy process, as per the U.S. Attorney's Office.
Through fake escrow disbursement requests and forged client signatures, money flowed into Markowitz's personal and business accounts instead of being used for clients' surrogacy journeys, U.S. District Judge Todd W. Robinson's court heard, in addition to hearing that she used these funds for unrelated ventures and even her expenses, Markowitz admitted in her plea agreement to deceptive practices that spanned a period from 2019 through 2021. Markowitz's sentencing also includes a requirement to pay $389,142 in restitution to the victims of her crimes.
"Lillian Markowitz turned her surrogacy businesses into a Ponzi scheme," U.S. Attorney Adam Gordon said, noting her exploitation of vulnerable clients seeking parenthood. Markowitz's actions were described as a betrayal of trust. Acting Special Agent in Charge Houtan Moshrefi affirmed that the case ended a cruel and deceitful scheme, per the U.S. Attorney's Office.
The Federal Bureau of Investigation led the probe into Markowitz's practices, resulting in charges of wire fraud that carry a maximum penalty of twenty years in prison and a $250,000 fine; however, she received a two-year sentence and the substantial restitution order, the case number being 24-CR-0904-TWR.
