‘It's devastating' says NTX woman who lost $47,000 in a surrogacy escrow account

A North Texas couple in the process of becoming parents said they are one of the hundreds of families from across the world to lose money after a surrogacy escrow management company's CEO is accused of stealing millions from the account.

According to a lawsuit, Dominique Side, the owner of the Houston-based company Surrogacy Escrow Account Management LLC, also known as SEAM, is accused of misappropriating escrow money to fund a lavish lifestyle and rap career.

The company acted as the middleman between intended parents and surrogates. The money people would place into their escrow fund would pay for their surrogacy, fees, and medical costs.

Court records show nearly $10 million of escrow money was used for Side's personal use, other businesses, real estate and business partners, not the intended purpose.

The FBI Houston division is investigating and set up a website to collect information from people who believe they were, "victimized by SEAM or have information relevant to this investigation."

Attorneys with Shackelford, McKinley & Norton, LLP are representing nearly two dozen families who have lost collectively more than $1 million after depositing money

"It's devastating when you have that much money, that just poof, is gone," said Jessica Climer who is out more than $44,000.

Climer and her husband Richard tied the knot 13 years ago. Since getting married, they were ready for the next chapter of their relationship.

"A family, we want kids," said Climer. "We want kids, the white picket fence, you know, all of it."

But their story took a heartbreaking turn. After multiple miscarriages and in-vitro-fertilization attempts, Climer and her husband decided to look at another option.

"I'm no longer able to carry, so we are now looking for surrogates for help," said Climer.

Last year they matched with a surrogate and placed $47,000 of their life savings into SEAM to pay for their surrogate's medical bills and fees.

"As far as we could tell, they were a pretty good legit company. They had been in business I think for 10 years or so. At that point and then June happened," said Climer.

The couple and hundreds of other people received emails at the beginning of June stating there was fraudulent activity on some accounts, some payments would be delayed, but that it was temporary.

"If you looked at your account through their company, your money is still showing, right? So it looks active, but our surrogate wasn't getting payments at that point," said Climer.

Ten days after the first emails, Climer and other clients received an email stating: 

"My sincerest apologies for the non-responsiveness. My company and I have been noticed that we are subject to an active investigation by federal authorities. Under advice of counsel, I am not permitted to respond to any inquiries regarding the investigation. Please be kindly advised that the investigation involves only me, as an individual, and SEAM, as a single-member entity. Regards, Dominique Side."

"It makes you angry. It's It's not fair. We've worked really hard for that American dream and ideal family, and we just want to know why," said Climer who expressed she's doubtful to ever get an answer.

She said her husband is working extra night shifts at a hospital where he's a social worker. Family members have also set up a GoFundMe account for the couple to help recoup the money lost.

Climer said they still plan on transferring an embryo with their current surrogate, who is understanding of the situation.

"We have been upfront with her about where we are with our finances and she still said that she wanted to move forward with us. So we are so blessed with that and she's a wonderful, wonderful human to want to move forward," said Climer.

The couple's attorney, Marianne Robak, a partner with Shackelford, McKinley & Norton, LLP, said they're working to recover assets.

On July 17 during a hearing on the case in Houston, a judge granted a temporary injunction to freeze all the funds in SEAMS and Side's bank accounts and any assets purchased with the escrow funds.

"Since getting that order, we have been working day and night to locate any assets that may be out there that was purchased with the escrow funds," said Robak. "Because under the Fraudulent Transfer Act, if any asset has been purchased with fraudulently transferred funds, those assets can be turned over to a constructive trust that could be for the benefit of these families."

The situation is another hurdle families who have already had quite the journey to get pregnant have to deal with.

“This case goes beyond just money because what we’re dealing with are these families' hopes for their future and their future families," said Robak."With the funds gone, many families are struggling to figure out how to get the surrogates and their babies the health care they need."  

Some clients have surrogates who are currently pregnant with their child, while others are in the process of transferring embryos like the Climer family.

Despite the challenges that come their way, Climer said she and her husband remain hopeful.

"Honestly, my faith in God, I know that he's got this and he's going to work through it for us and I believe that and we're going to get our miracle miracle baby one way or the other," said Climer.

NBC 5 reached out to SEAM for comment but received the same automated voicemail and email as last month.

At this time, Side has not been charged with a crime.