Surrogacy Con Artist Devastates Families With $400,000 Deception

Doctor uses stethoscope on pregnant woman's belly.

Lillian Markowitz, also known as Lilly Frost, has confessed to orchestrating a fraudulent surrogacy scheme, leaving victims devastated and the surrogacy industry on edge.

Quick Takes

  • Lillian Markowitz defrauded clients of nearly $400,000 in a surrogacy scam.
  • She operated under businesses based in San Diego, misleading clients with promises of securing funds.
  • Markowitz faces up to 20 years in prison and has agreed to repay her victims.
  • The fraudulent activities exploited vulnerabilities in the surrogacy market.
  • Gabrielle Ackerman, among other clients, endured significant emotional and financial distress.

The Fraudulent Surrogacy Scheme

Lillian Markowitz, known in the surrogacy world as Lilly Frost, pleaded guilty to defrauding hopeful parents. Her companies, My Donor Cycle, Surrogacy Beyond Borders, and Expecting Surrogacy, all based in San Diego, offered enticing yet false surrogacy prospects. The scam began as early as 2018, driven by financial distress. Over two years, from January 2019 to May 2021, she manipulated nine clients, collecting nearly $400,000 by promising low-cost Mexican surrogacy services.

Gabrielle Ackerman, like many other clients, faced devastating consequences. She experienced an unsuccessful surrogacy attempt due to inadequate medical care promised to be under control. Her last attempt ended tragically, with a prematurely born child not surviving, compounding her emotional and financial devastation.

Legal Repercussions and Sentencing

Markowitz’s fraudulent activities left both clients and surrogates in dire situations. She forged paperwork, including escrow requests, to siphon money, intending it to cover personal expenses and business costs. Instead, funds were manipulated into non-escrow accounts, breaching the trust of her clients and the system.

“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,” said FBI San Diego Special Agent in Charge Stacey Moy.

Scheduled for sentencing on April 11, 2025, Markowitz could face 20 years in prison and a hefty fine for wire fraud violations under Title 18, U.S.C., Section 1343. U.S. Attorney Tara McGrath, joined by Stacy Moy of the FBI, publicly condemned her actions as gross exploitation of client vulnerabilities.

A Closer Look at the Impact

The damaging ripple effect of Markowitz’s scheme extends beyond financial losses to include emotional trauma and life-altering disappointment for victims like Ackerman. Clients and surrogates alike found themselves tangled in legal and personal crises. Several clients feared their embryos were secretly sold, while surrogates were left underpaid, suffering health consequences from unfulfilled financial promises.

“The path to parenthood through surrogacy can be fraught with emotional and financial challenges,” said U.S. Attorney Tara McGrath.

Despite the devastating circumstances, Markowitz agreed to repay at least $389,142 to past clients. The FBI investigates further, encouraging potential victims to come forward. Such investigations highlight the necessity for stringent regulations to safeguard those seeking non-traditional paths to parenthood from fraudulent activities that prey on their hopes and dreams.

Sources:

  1. https://www.yahoo.com/news/betrayed-trust-stole-money-portland-180251588.html
  2. https://www.justice.gov/usao-sdca/pr/former-owner-san-diego-surrogacy-consulting-businesses-admits-stealing-client-funds
  3. https://www.lifesitenews.com/news/ivf-surrogacy-scammer-faces-up-to-20-years-in-prison-for-stealing-400000-from-clients/