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Assisted Reproduction

Surrogacy Scandal Epidemic Continuing: More Troubling Allegations Regarding Bala Surrogacy

We have previously blogged about allegations of impropriety at Bala Surrogacy, operated by the former Vice-President of SurroGenesis . Our office has attempted to assist two victims from this agency and, as we reported, police reports have been filed against Bala for their handling of these cases. Yesterday, another victim came forward and posted a comment on our blog. While I cannot corroborate the allegations, they are remarkably similar and consistent to what has been reported to me previously. Making the incident described below even more appalling and despicable is that the Intended Father and the Surrogate’s Husband are serving in Iraq and have sacrificed too much already.


For 7 years my husband and I tried to have a baby. In 2003, at the age of 29 yrs. old, I had an ectopic pregnancy and was diagnosed with Stage Four Endometriosis and both fallopian tubes were removed along with one ovary. Finally, in 2005 we had the funds to cover the fees for invitro, but unfortunately, a few weeks into the process other medical issues appeared and ended up having a full hysterectomy.

About 2 years ago I researched surrogacy and the egg donor process, but again we did not have the funds. In June 2009 my husband was called to serve a 1 year tour in Iraq. We were both heart-broken as we’ve NEVER been separated. The only good that could come out of his deployment was we would finally have the funds for surrogacy.

In December 2009 I contacted Bala Surrogacy via Bala’s internet site and within hours Holly Kahle called me back, explained the process, forwarded the “contracts” and advised she had a surrogate for us in mind…all in one day. My husband was signing the contracts and forwarding same back to Holly via the internet in the middle of a war zone in Baghdad, Iraq. We interviewed with surrogates via conference calls between myself, Holly, the surrogate and my husband in Iraq. Please note, our surrogate is also a wife of an active duty airman.

Within no time Holly was complaining to us about other IP’s saying they weren’t paying their surrogates and she kept asking us for more and more money, outside of what the contract had stated…she NEVER mailed us copies of contracts or other documentation which bore her signature. I, like a fool, sent her ALL the funds needed to fulfill OUR financial obligations to our surrogate.

NOTE: When we started this process I asked Holly “How much is this WHOLE process going to cost us?” I told her we only had $50,000 to invest. She said, and I quote, “The whole process will cost about $40,000 and no more than $50,000, including Bala’s fees”. LIES LIES LIES!!!!! We are now WELL over $60,000.

The problems with Holly started with the first payment to be made to our surrogate. Late payments were due to:
Holly was running around because her step-father was in the hospital.
Holly was having issues with her ovaries.
Holly had a hysterectomy
Holly had back surgery

Holly claimed she had an accountant. Holly, in September, claimed she had a new business partner, YET, no payments were being sent to our surrogate?!?! For MONTHS I requested medical information on our egg donor, as I believe it’s important for us to have, we’ve received NOTHING! For MONTHS I requested ALL escrow funds be returned to us. She even had our surrogate sign a release of funds – months ago – and to date no funds have been returned. She writes our surrogate saying her attorney will not allow her to correspond with us. Holly did inform our surrogate that she would return our escrow funds to us and has not done so to date.

Holly has breeched the contracts between us and Bala Surrogacy in more ways than one. I have DEMANDED all funds be returned to us as well as medical records for our egg donor. We have been trying for MONTHS now. We are in contact with the State Attorney Generals Office and PRAY all monies and records will be returned. If our efforts through the DA are not successful, we may take this to the media with the hope of our surrogate receiving her monies due and for other couples contemplating surrogacy


Holly stated “If your surrogate gives birth in the state of Pennsylvania, the IP’s names automatically go on the birth certificate”. This is NOT true. This depends on the county your child is born in OR where you live OR where your surrogate lives. The Judge in our county DOES NOT grant such Orders as he does not agree with the surrogacy process. Thank GOD our surrogate lives in an approving county, otherwise this could have been ALOT worse.


In the absence of regulation, licensure and oversight, these types of incidents will continue to occur. Exacerbating the situation is the reluctance of law enforcement to get involved. This has created a perfect storm allowing unscrupulous agencies to prey upon vulnerable infertility patients. The sagest advice I can give is heed the warning by the victim who posted the comment above: “PLEASE, DO THOROUGH RESEARCH ON SURROGACY AGENCIES PRIOR TO MAKING YOUR DECISION!!!!!!”


3 comments for “Surrogacy Scandal Epidemic Continuing: More Troubling Allegations Regarding Bala Surrogacy”

  • Andy, thanks for getting this information out. What I want to know is – is this agency owner also practicing law? It sure sounds like it. And, did they have attorneys involved? Again, doesn’t sound like it. Did this agency give them contracts? Or, was an attorney involved who did not advise against funds being held by an agency? What a mess! I hope that everything works out for these couples. If you need anything, let me know.


    Please note: our surrogates husband was not in Iraq, he is serving state side.
    Theresa, to answer your questions:
    1 – the owner does not practice law
    2 – we signed the agencies contract, to include the contract for the escrow account, and an outside attorney drafted the agreements between self and surrogate and between self and egg donor.
    3 – No attorney to advise against the agency holding escrow account.

    We were told Bala does have an attorney, but all attempts to acquire attorneys information were unsuccessful.

    I received an email today from yet another surrogate in the same situation whom further advised she has been in contact with 6 other families scammed by Bala. I was told Holly is holding $36,000 in escrow and neither her nor the IP’s have heard from Holly in months.

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