Lillian Arielle Markowitz, 40, a former owner of three San Diego-based surrogacy consulting businesses, pleaded guilty to fraud charges after admitting to stealing hundreds of thousands of dollars from her clients’ escrow accounts. The U.S. Attorney’s Office for the Southern District of California announced her guilty plea on Thursday.
Markowitz, originally from Portland, Oregon, operated My Donor Cycle, Surrogacy Beyond Borders, and Expecting Surrogacy, where she marketed herself as a surrogacy consultant, offering services to individuals seeking assistance in becoming surrogate parents.
According to her plea agreement, Markowitz began her fraudulent actions in 2018 by submitting false requests to the escrow company holding her clients’ funds. She admitted to submitting four fraudulent disbursement requests from the accounts of two couples, one of which included a forged client signature. As a result, she obtained checks from the escrow company without her clients’ consent or knowledge.
Between January 2019 and May 2021, Markowitz also defrauded nine other clients by falsely promising that their funds would be securely deposited into escrow accounts. Instead, she deposited the funds into her business checking account, using the money for both business and personal expenses.
As part of the plea agreement, Markowitz has agreed to pay at least $389,142 in restitution to the victims of her fraud.
U.S. Attorney Tara McGrath emphasized the emotional and financial challenges surrogacy can entail, stating, “This defendant selfishly exploited vulnerable clients who were striving to fulfill their dream of becoming parents.”
Markowitz’s sentencing is yet to be scheduled, but her case highlights the serious consequences of defrauding clients in industries that require trust and care.