WINDERMERE, Fla. – A Central Florida couple who recently became parents through surrogacy is among hundreds of families worldwide who claim they’ve been defrauded by an escrow company that was supposed to handle payments to surrogates.
The FBI has launched a criminal fraud investigation into Surrogacy Escrow Account Management LLC, or SEAM. The Texas-based escrow company is facing multiple lawsuits from families who allege they’ve been unable to get money back after it abruptly closed this summer.
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“Some people are out $150,000 or more,” Angela Cacciola said. “We’re talking about several million dollars, probably, that is just gone. Somebody else spent our money.”
Cacciola and her husband Joe became the parents of a boy named Antonio in April.
Like many couples starting or growing their families through surrogacy, the Cacciolas used an escrow company to hold their funds until the money was needed by the surrogate to cover her compensation, medical bills and other expenses.
“It’s very similar to when you’re buying a house,” Cacciola said. “You want the seller to understand that you’re serious about it and have the funds to support the sale.”
SEAM had a good reputation among people familiar with the surrogacy process, Cacciola said. The company promoted itself with the slogan, “We’ll handle the money. You handle what matters.”
After Antonio was born, the Cacciolas said about $8,000 remained in their escrow account that should have been distributed to their surrogate, in part to cover additional medical expenses she incurred while experiencing childbirth complications.
Cacciola said the surrogate, also known as a gestational carrier, never received the money from SEAM before it ceased operations in June.
“That money is gone,” Cacciola said. “And because she is owed that money and we’re responsible for it, we had to come up with that money again and pay her directly.”
Yet the Cacciolas said they feel fortunate because their son was born and most of their payments had successfully been distributed to the surrogate.
Couples just beginning the surrogacy process when SEAM shut down claim they’ve lost tens of thousands of dollars. In some cases, they’ve also lost hope of becoming parents anytime soon.
Riane Woods told KPRC-TV she and her husband put $62,000 into a SEAM escrow account.
“It’s super emotional,” Woods said. “We don’t know how we can move forward to have our own child at this point.”
The FBI, which launched a fraud investigation into SEAM earlier this year, has created a webpage seeking information about potential victims.
Lawsuits have been filed in Texas on behalf of more than two dozen families who claim they’ve lost money to SEAM.
Cacciola and Woods are not among the plaintiffs.
Dominique Side, a businesswoman and aspiring rapper, was listed on SEAM’s website as its director.
“The sudden collapse of SEAM and actions taken by Dominique indicate 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,” one lawsuit alleges.
According to that lawsuit, more than 600 families who claim to have lost a total of more than $10 million have joined a private Facebook group devoted to the collapse of SEAM.
“Defendants’ actions are nothing short of evil,” the lawsuit states.
Side did not respond in emails from News 6 seeking comment.
KPRC-TV received an email from Side stating that she is subject to an active investigation by federal authorities and has been advised by legal counsel to not respond to any inquiries.
“She definitely did something she knew was wrong and hurt a lot of people in the process,” Cacciola said. “She needs to go to jail. I’m really hoping the politicians and people in office who have the ability to make that happen see how detrimental this has been to families and that they hold the appropriate people accountable.”
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