Tara K. McGrath, U.S. Attorney | U.S. Attorney for the Southern District of California
Lillian Arielle Markowitz, the former owner of three surrogacy consulting businesses in San Diego, has pleaded guilty to fraud charges. In federal court, she admitted to stealing substantial sums from client escrow accounts intended for surrogacy-related services.
Markowitz owned My Donor Cycle, Surrogacy Beyond Borders, and Expecting Surrogacy. She marketed herself as a consultant for those seeking surrogacy. However, starting in 2018, when her businesses faced financial difficulties, she devised a scheme to misappropriate funds from her clients. This involved submitting fraudulent requests to the escrow company managing her clients' funds.
She acknowledged making four false escrow disbursement requests involving two couples' accounts. One request included a forged client signature. Each request resulted in checks being issued without the clients' knowledge or consent.
Furthermore, between January 2019 and May 2021, Markowitz defrauded nine additional clients by falsely assuring them that their funds would be securely held in an escrow account for their surrogacy expenses. Instead, she deposited these funds into a business checking account and used them for general business expenses and personal use. As part of her plea agreement, Markowitz will make restitution of at least $389,142 to her former clients.
U.S. Attorney Tara McGrath stated: "The path to parenthood through surrogacy can be fraught with emotional and financial challenges." She added that Markowitz "selfishly exploited vulnerable clients who were striving to fulfill their dream of becoming parents."
FBI San Diego Special Agent in Charge Stacey Moy remarked: "Instead of aiding her hopeful clients on their path to parenthood, the defendant took advantage of their vulnerability." Moy assured that the FBI would continue investigating such fraud schemes.
Markowitz's sentencing is scheduled for April 11, 2025, before District Judge Todd W. Robinson.
Individuals who believe they may be victims are encouraged to contact the FBI San Diego field office at (858) 320-1800.
The case is being prosecuted by Special Assistant United States Attorney Jeffrey D. Hill and Assistant U.S. Attorney Mark W. Pletcher.
