A surrogacy escrow management company and its owner are accused of misappropriating millions of dollars from prospective surrogates and are facing lawsuits from at least 23 families and an FBI investigation.
Funds set aside to pay for surrogate mothers’ medical expenses and fees have now disappeared, leaving families across the country and around the world in limbo, with hundreds of surrogate mothers carrying children that are not theirs.
According to the lawsuit, Dominic Syed, owner of Houston-based Surrogacy Escrow Account Management LLC, also known as SEAM, is accused of embezzling escrow funds and using them to fund a lavish lifestyle and a rap career.
SEAM’s website describes itself as a link between prospective parents and surrogate mothers. Families deposit money into the account and SEAM pays the women who carry the babies. But in June, millions of dollars disappeared, according to court documents.
“This seems like a planned act. How can millions of dollars just disappear without any planning?” said Ariel Mitten, a Washington state native who said her Indiana surrogate hasn’t been paid since May.
The Houston-based Shackelford Law Firm is representing Mitten and 22 other families. The firm initially filed the lawsuit on behalf of a couple who claim to be victims.
“The defendants’ actions are nothing short of evil.”
According to the lawsuit filed by the Shackelford Law Firm.
The couple had deposited $61,250 into the SEAM escrow account since December 2023, and the account had been operating without issue for several months, according to the lawsuit, but they were not notified of the late payment until June 4.
Court documents state he received an email 10 days later saying, “All operations have been suspended due to legal action. We are unable to provide any further details on this matter at this time.”
The automated response to my inquiry read, “I sincerely apologize for the lack of response. I have been informed that myself and my company are the subject of an investigation by federal authorities. On the advice of my legal counsel, I am not permitted to respond to any inquiries regarding the investigation. Please understand that the investigation only targets me personally and our single-member organization, SEAM. Best regards, Dominic.”
According to the lawsuit, Syed, described as a “sexy rap and R&B singer and music producer,” allegedly transferred more than $2.2 million of his fiance’s escrow funds to fund his own music career. The lawsuit further states that Syed is accused of using the funds for “lavish travel around the world and the purchase of designer clothing and luxury vehicles.” Dominique even used the escrow funds to pay for membership to Soho House, a club exclusive to music industry celebrities.
SEAM said she used more than $6.2 million of Planned Parenthood’s escrow funds to fund a music studio called Vgn Bae Studios that she and a man named Anthony Hall, who is also a defendant in the lawsuit, started in 2022. The suit alleges it contains music equipment worth between $700,000 and $1.3 million and costs $21,000 in rent. The studio, located at 7800 Amelia in Houston, was listed for sale for $3.5 million, according to the lawsuit.
The escrow funds were used to make payments to people unrelated to their original purposes, including real estate investments, other businesses and agents.
New court documents state that forensic accountants found that “after receiving the escrow funds, SEAM transferred them to an operating account.”
Additionally, the tax returns state that SEAM showed it transferred more than $4.9 million of Intended Parents’ escrow funds to payments on AMEX cards related to Vgn Bae Music Group Inc., a music studio owned by Syed and Hall.
The surrogacy escrow company is accused of transferring about $424,000 to loan sharks.
New details revealed during a hearing at the State Capitol in Houston on Wednesday allege that Syed set up a new escrow company called Life Escrow, LLC with the same address as SEAM. Syed may have transferred funds to the new bank account on June 14. The lawsuit also alleges that Syed transferred all of his assets to Hall, including shares in Vgn Bae, Vgn Bae Studios and Vgn Bae Properties.
NBC 5 attempted to reach out to SEAM and Syed but only received automated messages via email and phone. Syed’s social media accounts have since been deleted.
The FBI currently operates a website that potential victims can visit. Please pass their information on to investigators. At this time, Syed has not been charged with a crime.
On Wednesday, a Harris County judge issued a temporary restraining order freezing assets from SEAM while the investigation continues.
