Lillian Arielle Markowitz, the former owner of three surrogacy consulting businesses in San Diego, has been sentenced to 24 months in federal prison. The sentencing took place today, with U.S. District Judge Todd W. Robinson also ordering her to pay $389,142 in restitution to her clients.
Court documents reveal that Markowitz owned My Donor Cycle, Surrogacy Beyond Borders, and Expecting Surrogacy. These businesses were marketed as surrogacy consulting services for aspiring parents. However, starting around 2018, Markowitz devised a scheme to defraud her clients due to financial difficulties. She submitted fraudulent requests to withdraw client funds from escrow accounts and even forged a client's signature.
Markowitz admitted in her plea agreement that between 2019 and 2021 she deceived nine additional clients by falsely assuring them their funds would be safely deposited into an escrow account for surrogacy-related expenses. Instead, she used these funds for general business expenses and personal costs unrelated to the clients' surrogacy journeys.
"Lillian Markowitz turned her surrogacy businesses into a Ponzi scheme," stated U.S. Attorney Adam Gordon. "She did not simply steal funds. She stole the dream of parenthood from her victims."
Acting Special Agent in Charge Houtan Moshrefi remarked on the conclusion of this deceitful scheme: "After years of deception, Ms. Markowitz will now be held accountable for her egregious breach of trust and unethical conduct."
The case was prosecuted by Special Assistant United States Attorney Jeffrey D. Hill and Assistant United States Attorney Mark W. Pletcher.
Markowitz faced charges under Title 18, U.S.C., Section 134 for wire fraud, which carries a maximum penalty of twenty years in prison and a $250,000 fine.
The investigation was conducted by the Federal Bureau of Investigation.
