A surrogacy escrow management company and its owner accused of misappropriating millions of dollars from intended parents are facing a lawsuit from at least 23 families and an FBI investigation.
The money intended to pay surrogates' medical expenses and fees is now gone, leaving families across the country and around the world in limbo as hundreds of surrogates carry children that do not belong to them.
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.
On its website, SEAM is said to be the link between intended parents and surrogates. Families would deposit money into an account SEAM managed to pay the women carrying their babies, but in June, millions of dollars vanished, according to court records.
Get top local stories in DFW delivered to you every morning. Sign up for NBC DFW's News Headlines newsletter.
"It feels premeditated. How can someone have millions of dollars disappear without some sort of plan?" asked Arielle Mitton. She's from Washington, and her surrogate from Indiana hasn't been paid since May.
The Shackelford Law Firm in Houston is representing Mitton and 22 other families. Initially, they filed the lawsuit on behalf of a husband and wife who claimed to be alleged victims.
"Defendants' actions are nothing short of evil."
Says lawsuit filed by Shackelford Law Firm
Local
The latest news from around North Texas.
According to the lawsuit, the couple deposited $61,250.00 in the SEAM escrow account since Dec. 2023, which ran smoothly for months. They weren't notified about payment delays until June 4.
The court document states that ten days later, they received an email saying, "Due to legal action, all operations have been placed on hold. At this time, I am unable to provide further details regarding this matter.”
An automated email responded to inquiries stated: "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."
The lawsuit alleges Side, described as "a racy rap and R&B singer and music producer," transferred more than $2.2 million of Intended Parents' escrow funds to pay for her music career. The document goes on to state Side is accused of using the money to take, "lavish trips all over the world, purchase designer clothing and luxury vehicles. Dominique even used the escrow funds to pay for her membership to Soho House, which is an exclusive club for celebrities in the music industry."
It said SEAM transferred more than $6.2 million of the Intended Parents escrow funds to finance a music studio she and a man named Anthony Hall, who is also named as a defendant in the lawsuit, started in 2022 called Vgn Bae Studios. The lawsuit claims there's between $700,000 to $1.3 million worth of music equipment, and rent costs $21,0000. The studio, located at 7800 Amelia in Houston, was on the market for $3.5 million, according to the lawsuit.
The escrow money was used to pay real estate investments, other businesses, and people are all unrelated to the intended purpose, the surrogates.
In a new court document, a forensic accountant discovered that "once the escrow funds were received, SEAM transferred them to an operation account."
It goes on to state that tax returns show SEAM transferred more than $4.9 million of Intended Parents escrow money to pay an AMEX card related to Vgn Bae Music Group Inc., the music studio owned by Side and Hall.
The surrogacy escrow company is accused of transferring about $424,000 to money lenders.
New details from a hearing on Wednesday in Houston State Hall is accused of creating a new escrow company called Life Escrow, LLC., which has the same address as SEAM. Side is accused of possibly transferring funds to the new bank account on June 14. The lawsuit claims Side also transferred any assets, including her stakes in Vgn Bae, Vgn Bae Studios, and Vgn Bae Properties, to Hall.
NBC 5 tried to contact the SEAM and Side but also received the automated message via email and phone. Side's social media has since been taken down.
The FBI currently has a website for potential victims to visit and pass along their information to investigators. At this time, Side has not been charged with a crime.
On Wednesday a Harris County judge granted a temporary injunction to freeze assets that have come out of SEAM while the investigation is ongoing.
