Lillian Arielle Markowitz, the former owner of three surrogacy consulting businesses in San Diego, was sentenced to 24 months in federal prison for defrauding her clients. The sentence was handed down by U.S. District Judge Todd W. Robinson, who also ordered Markowitz to pay $389,142 in restitution.
Markowitz operated My Donor Cycle, Surrogacy Beyond Borders, and Expecting Surrogacy. She marketed herself as a consultant for those seeking parenthood through surrogacy. According to court documents, financial distress led her to devise a scheme beginning around 2018 to steal client funds by submitting fraudulent requests for escrow withdrawals. In one instance, she forged a client's signature.
From 2019 through 2021, Markowitz admitted in her plea agreement that she defrauded nine additional clients by falsely promising their funds would be secure in an escrow account and used only for surrogacy-related expenses. Instead, she deposited these funds into her business account and used them for unrelated expenses.
“Lillian Markowitz turned her surrogacy businesses into a Ponzi scheme,” stated U.S. Attorney Adam Gordon. “She did not simply steal funds; she stole the dream of parenthood from her victims.”
Acting Special Agent in Charge Houtan Moshrefi commented on the sentencing: “Today’s sentencing of Lilian Markowitz marks the conclusion of a cruel and deceitful scheme that deeply exploited the victims’ hopeful dreams of becoming parents.”
The case was prosecuted by Special Assistant United States Attorney Jeffrey D. Hill and Assistant United States Attorney Mark W. Pletcher with investigations conducted by the Federal Bureau of Investigation.