For hopeful parents pursuing a surrogacy journey , the recent SEAM escrow fraud scandal has sent shockwaves through the community.

Partners Alex and Jonathan have been together for almost a decade. They initially met in Paris back in 2011, but didn’t get together as a couple until a few years later. Paris was followed by a 7-year stint living in New York City, and the guys have since moved back to France, and now reside in the city of Blois.

While Jonathan has always wanted children, it wasn’t until a few years into their relationship that becoming dads became a shared project for the couple. Knowing their U.S.-based surrogacy journey would be expensive, the guys agreed to start saving money immediately (about seven years ago!).

The Scandal Unveiled

SEAM, once considered a reputable escrow service in the surrogacy industry, was entrusted with managing the funds intended to cover the substantial costs of surrogacy arrangements. Intended parents, including many hopeful dads, deposited large sums of money into SEAM’s escrow accounts, believing their funds were safe and earmarked for medical expenses, surrogate compensation, and other critical costs associated with surrogacy.

However, recent revelations have uncovered a devastating reality: SEAM was not the secure financial custodian it appeared to be. Allegations of mismanagement, embezzlement, and outright fraud have surfaced, with reports indicating that millions of dollars have been siphoned off, leaving intended parents like Alex and Jonathan with empty accounts and shattered dreams.

 

The Impact on Prospective Parents

For prospective parents, the SEAM scandal is not just a financial disaster; it’s a deeply personal blow. Many have spent years saving for surrogacy, often making significant sacrifices to afford the process. The funds they entrusted to SEAM were not just money; they represented the future they envisioned—a future that now hangs in the balance.

These folks were on the cusp of welcoming their children into the world, and are now scrambling to find alternative ways to cover the surrogacy fees. The situation is dire: surrogacy costs can range from $150,000 to $240,000 or more, depending on various factors. With their escrow accounts drained, many dads-to-be are facing the possibility of having to delay or cancel their surrogacy journeys.

Of course, with a pregnant surrogate due in just a few months, delaying or canceling their journey was clearly not an option for Alex and Jonathan. But faced with the loss of more than $60,000 that had been misappropriated from their escrow account, the guys had to get creative. They plan to keep on top of all their remaining surrogacy expenses, including their surrogate’s final compensation payments, by neglecting newborn insurance and foregoing a special reserve account that would have given them the ability to cover medical emergencies and other unplanned expenses.

Now, instead of excitedly looking forward to their daughter’s due date, they cannot help but live in fear of what could happen if she is born with any medical complications, potentially strapping the family with crippling medical bills they cannot afford.

Coping with the Crisis

In the wake of the scandal, affected dads-to-be are exploring every possible avenue to recoup their losses and move forward. Some are turning to personal savings or retirement accounts, while others are seeking loans or lines of credit.

Crowdfunding has also become a popular option, with many hopeful parents launching campaigns of their own, including Alex and Jonathan. (If you’re inspired to help them out, you’ll find a link to their fundraising page at the end of this post.)

Sadly, these solutions are not without their challenges. Borrowing money or draining savings can have long-term financial consequences, and not every crowdfunding campaign meets its goal. Moreover, the emotional toll of dealing with the fallout from the SEAM scandal is immense. Many dads-to-be are grappling with feelings of betrayal, anxiety, and uncertainty about their future as parents.

 

The Road Ahead

As legal battles over the SEAM scandal unfold, there is hope that some of the stolen funds will be recovered. However, the process could take years, and there are no guarantees that all intended parents will be made whole. In the meantime, those affected are left to navigate the complex and often overwhelming landscape of surrogacy finance on their own.

For dads-to-be, this scandal is a harsh reminder of the importance of conducting your own due diligence before finalizing your family-building partners, especially those you will entrust to manage your money.

Of course, you can and should continue to seek referrals from your most trusted relationships within the industry. But before finalizing your decision, add your own research, i.e. search the company name on Google, or navigate to a trusted industry review platform and make your way through a bunch of their reviews.  

Conclusion

The SEAM escrow fraud scandal has cast a long shadow over the surrogacy community, leaving dads-to-be in a state of financial and emotional turmoil. As they work tirelessly to find ways to cover their surrogacy fees, they are also advocating for change—seeking justice for themselves and ensuring that future intended parents are safeguarded from such devastating betrayals.

These dads-to-be are showing incredible resilience as they navigate their surrogacy journey. Despite the challenges, their dedication to becoming parents stays strong. With the support of loved ones, the surrogacy community, and others who share their journey, they remain committed to realizing their dream of fatherhood.

Crowdfunding Page Links:

If you are inspired to help Alex and Jonathan, please visit their fundraising page: https://www.gofundme.com/f/support-alex-and-jon

If your escrow account was managed by SEAM and you (or someone you know) also lost everything, we’d be happy to support your crowdfunding efforts as well. Just send us your name and a link to your page via a social media DM or email dads at gayswithkids.com