Surrogacy Scandal: Escrow Company Owner Accused of Stealing Millions to Fund Rap Career; FBI Steps In

Houston, TX — A Houston-based surrogacy escrow management firm is embroiled in a legal battle after being accused of siphoning millions of dollars from clients intended to support surrogacy arrangements. The company, Surrogacy Escrow Account Management LLC (SEAM), and its owner, Dominique Side, face accusations involving lavish personal expenditures that have jeopardized the financial plans of at least 23 families globally, prompting an FBI investigation.

In court filings, SEAM claims to facilitate financial transactions between would-be parents and surrogates. Allegedly, a significant amount of funds that families had deposited for surrogates’ medical and personal care has mysteriously vanished.

Dramatizing the gravity of the mismanagement, a parent involved in the lawsuit, Arielle Mitton of Washington, shared that their surrogate from Indiana has been unpaid since May, raising serious ethical and financial concerns. “It appears premeditated. It’s hard to imagine such a large sum of money simply disappearing without elaborate planning,” Mitton remarked.

Shackelford Law Firm, representing the aggrieved families, filed the initial lawsuit. They emphasized that the defendants’ actions are perceived as profoundly detrimental, bordering on criminality. The sentiment was echoed in court documents describing the failure to notify partners of financial irregularities promptly.

In early June, affected families received emails from SEAM indicating a halt in all operations due to unspecified legal actions, which further obscured the situation.

The lavish lifestyle funded through misappropriated funds includes millions reportedly spent on Side’s emerging rap and R&B music career. Court documents reveal that over $2.2 million was redirected to support her music ventures, including luxury trips, designer clothing, and a membership at Soho House, an exclusive club known for its celebrity clientele.

Further investigations unearthed more disturbing financial diversions. Around $6.2 million was transferred to support a music studio, Vgn Bae Studios, which Side started with another defendant, Anthony Hall, in 2022. The studio is outfitted with expensive music equipment and located in a property valued at $3.5 million.

Compounding the allegations, it was discovered that once the funds hit the escrow account, they were quickly moved to a business operating account. SEAM’s financial statements showed another alarming transaction of $4.9 million used to settle payments on an American Express card associated with Vgn Bae Music Group Inc.

In a recent court hearing, new accusations surfaced about Side’s possible continuation of her dubious practices under a new business, Life Escry, LLC, formed with the same address as SEAM. There is also concern that Side might have transferred significant assets to Hall before the investigation gained momentum.

Authorities have been tight-lipped about the details as the investigation unfolds. Meanwhile, a Harris County judge has issued a temporary injunction to freeze all assets stemming from SEAM to prevent further financial hemorrhage.

The FBI has now set up a dedicated webpage inviting additional victims to come forward and share their experiences, which could be pivotal in unfolding the extent of the alleged fraudulent activities.

This ongoing case has brought to light the vulnerabilities within the surrogacy industry, highlighting the need for stringent regulations and oversight to protect all parties involved in such sensitive and significant personal investments.