Lillian Arielle Markowitz, the former owner of three surrogacy consulting businesses in San Diego, has admitted to fraud charges in federal court. She confessed to stealing hundreds of thousands of dollars from clients' escrow accounts intended for surrogacy-related services.
Markowitz owned My Donor Cycle, Surrogacy Beyond Borders, and Expecting Surrogacy. Through these businesses, she marketed herself as a consultant for individuals seeking surrogate parenthood. However, financial distress led her to devise a scheme starting around 2018 to misappropriate client funds by submitting fraudulent requests to the escrow company managing those funds.
She acknowledged submitting four false escrow disbursement requests from two couples' accounts, including one with a forged signature. Each request resulted in checks issued without the clients' knowledge or consent.
From January 2019 through May 2021, Markowitz deceived nine additional clients by falsely assuring them that their funds would be securely held in an escrow account for surrogacy expenses. Instead, she deposited these funds into a business checking account and used them for general business expenses and personal use. As part of her plea agreement, Markowitz will make restitution of at least $389,142 to her former clients.
U.S. Attorney Tara McGrath commented on the case: “The path to parenthood through surrogacy can be fraught with emotional and financial challenges.” She added that Markowitz "selfishly exploited vulnerable clients who were striving to fulfill their dream of becoming parents."
FBI San Diego Special Agent in Charge Stacey Moy stated: “Instead of aiding her hopeful clients on their path to parenthood, the defendant took advantage of their vulnerability, betrayed their trust, and stole their money.” The FBI continues its efforts against such fraud schemes.
Markowitz is set for sentencing on April 11, 2025, before District Judge Todd W. Robinson. Victims are encouraged to contact the FBI San Diego field office if they believe they have been affected by this case.
Special Assistant United States Attorney Jeffrey D. Hill and Assistant U.S. Attorney Mark W. Pletcher are prosecuting this case under Case Number 24-CR-0904-TWR.
Markowitz faces charges under Title 18 U.S.C., Section 1343 for wire fraud with a maximum penalty of twenty years imprisonment and a $250,000 fine.