Houston surrogacy escrow company ordered to pay restitution after Washington state investigation
Side has not been held criminally responsible for stealing the funds, as alleged in an ongoing civil case, but earlier this year, a Harris County judge ordered more than $1 million be paid to families who lost money and sued.
More than a year after Houston-based Surrogacy Escrow Account Management, or SEAM, suddenly collapsed and owner Dominique Side was accused of using millions of dollars to fund her personal life and rap career, a Washington state regulatory agency is taking action.
Side allegedly misappropriated millions of dollars from intended parents around the globe who deposited money into escrow accounts with her company SEAM. The money was meant to pay their surrogates throughout the pregnancy journey.
Side has not been held criminally responsible for stealing the funds, as alleged in an ongoing civil case, but earlier this year, a Harris County judge ordered more than $1 million be paid to families who lost money and sued.
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New records obtained by KPRC 2 News reveal Washington is taking enforcement action against SEAM after two consumers in that state reported losing more than $171,000 as part of the alleged scheme.
The Washington State Department of Financial Institutions’ Division of Consumer Services, a regulatory agency, found that SEAM didn’t distribute the money to the surrogates and didn’t refund any of the money to the Washington state consumers.
Side and SEAM were never licensed to conduct business as an escrow agent in Washington state, according to the records.
The agency is still investigating, but in a statement of charges filed in late September, state investigators indicated intent to order that would require SEAM and Side to:
- Cease and desist performing escrow services in Washington until being licensed, or meet an exclusion from the licensing requirements
- Block Side from any work with an escrow company in Washington for 10 years
- Refund all money to the Washington state victims
- Pay a fine of at least $217,900
- Pay an investigation fee of at least $1,856.25
- Maintain records involving Washington state escrow transactions for six years
The document indicates SEAM and Side can respond to and contest the charges at an administrative hearing, which can be requested within 20 days from the date the statement of charges is mailed out.
A federal investigation of SEAM and Side appears to be ongoing, as the FBI continues to seek information from victims through an online form.
