On April 21, 2021, a federal judge entered a sentence of jail time and restitution for Greg Blosser, the owner of The Surrogacy Group. Blosser was convicted on wired fraud after conning 44 of his clients, including individuals from the United States and across the world, all of whom had hoped to become parents through surrogacy. Blosser was sentenced to 32 months in federal prison followed by three years of supervised release, as well as restitution in the amount of $1,194,519.54, for his time misappropriating client money from 2015 to 2019.

Jennifer C. Boone, FBI special agent on the case, explained in a Department of Justice press release that “Dreams, hopes and bank accounts were wiped clean by Mr. Blosser who preyed on couples who were already in a vulnerable place. Today’s sentencing is a reminder that the FBI will use our resources to root out fraudulent surrogacy schemes that violate the trust of the American public.”

Of course, this wasn’t the first time that hopeful parents had been taken for a ride after turning to a surrogacy agency to try to grow their families. Surrogacy, by its very nature, is an area where people are especially vulnerable. Most intended parents do not turn to surrogacy lightly but have first suffered years of fertility treatments and other costly and emotionally draining options to parenthood. Last week, I wrote about one intended parent who testified in favor of Colorado’s pro-surrogacy bill, describing how she and her spouse turned to surrogacy only after experiencing 10 failed adoptions!

Scamming The Vulnerable

Blosser defrauded his clients in two ways. First, some clients paid The Surrogacy Group to help them find a surrogate to carry their child. But despite taking the money, Blosser never delivered any surrogates for these individuals. For others, he did, indeed, help them find a surrogate. The Surrogacy Group then insisted on holding the escrow account for the funds, which meant keeping the intended parents’ money, ostensibly to be used to pay or reimburse the surrogate during the pregnancy. That is actually legal in most states and not uncommon, so long as you … actually use the money to appropriately pay the surrogate’s expenses. But Blosser didn’t do that. Instead, he took the money and left surrogates and intended parents high and dry, using the money on unrelated items. Of course, intended parents were still obligated to make these payments to their surrogates, and were forced to come up with basically double the money, so they could pay for the expenses a second time.

Blosser, attempting to defend himself, initially explained that he merely borrowed his clients’ money (without their knowledge or consent) to try to save his failing business. That’s not much of a defense even if true. But given the sheer number of victims and over $1.1 million stolen, it’s hard to see anything but knowing and willful intent to defraud — as he ultimately pleaded guilty to. His arrest situation, as he attempted to board a cruise vacation with his family, also did not merit much sympathy.

Of course, it’s hard to find an industry impervious to fraud. But because of the especially vulnerable nature of intended parents, this is an area where fraud continues to happen, and where special caution is appropriate. People looking for help with surrogacy need to do their homework before shelling out tens of thousands of dollars.

But besides asking intended parents to do their homework, what can be done to address this legally?

Time For Ethics And Standards

Several organizations have been working to raise the bar in the assisted reproductive technology space. The Society for Ethics in Egg Donation and Surrogacy (SEEDS) is a nonprofit organization formed in 2012 with a purpose to define and promote ethical behavior by all parties involved in third-party reproduction. SEEDS has taken the lead in setting ethical standards and providing educational programs for professionals — especially matching programs like The Surrogacy Group’s role in surrogacy.

SEEDS has also taken the lead in bringing professionals together when faced with other scandals. For example, the organization has worked hard to keep on top of the situation with the surrogacy health insurance product that wasn’t what it seemed, called PregnancyCare, offered by Omega Family Services. That train wreck continues to unravel, while SEEDS works to share information with interested parties and hold regular meetings to assist victims with their options and paths forward.

Earlier this year, another organization emerged in the surrogacy space, the Reproductive Alliance. It is a newly formed accreditation entity with the goal of establishing national standards protective of surrogates and intended parents. The Reproductive Alliance explains that surrogacy matching agencies will need to demonstrate high standards and professionalism to receive accreditation.

Of course, it’s possible that another Greg Blosser disaster could sneak through safety nets and standards set by organizations like SEEDS and the Reproductive Alliance. But it’s good to see a strong dedication in the industry by those who care about getting it right.

Ellen Trachman is the Managing Attorney of Trachman Law Center, LLC, a Denver-based law firm specializing in assisted reproductive technology law, and co-host of the podcast I Want To Put A Baby In You. You can reach her at babies@abovethelaw.com.