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Assisted Reproduction

How To Avoid Being Victimized By Unscrupulous Agencies

I have received a number of questions recently on how to assess if a surrogacy and or egg donation agency is legitimate and trustworthy. So I dusted off an old post from the SurroGenesis days and am reposting now:

George Bernard Shaw said it best: “If history repeats itself, and the unexpected always happens, how incapable must Man be of learning from experience.” I have already received a few inquiries from people concerned about the status of their trust funds and security of their payments following the allegations of impropriety at Bala Surrogacy Agency. So I have listed, quite quickly, just a few things to keep in mind if you are anxious about an imminent or ongoing surrogacy arrangement:

  • Do not rely upon a website’s representations or testimonials. Contact independent professionals such as physicians, attorneys and mental health professionals to obtain an objective opinion about the program you are considering.
  • Agencies have preyed upon vulnerable Intended Parents using glossy marketing material; impressive websites;and bogus statistics, qualifications and testimonials. So while the internet has enabled unscrupulous agencies to exploit unsuspecting individuals, it also can be used to great advantage. Use the internet to conduct your own research into any agency you are considering. A quick Google Earth search would have revealed that most of the SurroGenesis offices did not exist or were not what they were purported to be. A Google search on the owner of Bala Surrogacy would have revealed a prior affiliation with SurroGenesis which might be an influencing factor in your decision making process.
  • Be skeptical. Agencies are busineses and while their motivations may be largely altruistic, they nevertheless exist to make a profit. Do not assume that any representation that is being made is truthful. Trust but verify. Similarly, if you conduct any internet research, be sure that the source of the information is unbiased. There are many commercial sites, aligned with agencies, who are masquerading as neutral and independent resources of information. Moreover, it is not uncommon to see message boards full of wonderful testimonials without any ability to determine the objectivity of the commenter.
  • Insist that the agency disclose any all real or potential conflicts of interest. Demand that they disclose any ownership or pecuniary interest they may have in any outside entity or professional that they refer you to.
  • Review their retention documents carefully. Some agencies include hidden charges or make all or a portion of their fee non-refundable — even if they provide no services. You have a right to negotiate changes to your agency contract and if the agency is over-reaching and unwilling to address your concerns, you may need to find a new agency.
  • Demand that the agency, in writing, explain how they handle trust or escrow accounts. If they refer you to an outside escrow company, be sure to inquire as to any ownership or financial interest the agency has in that escrow company. Inquire as to whether the escrow company is bonded, licensed and/or insured. Make certain that the escrow company transmits regular statements reflecting the status of your account. If your surrogate agency serves as the trust administrator, demand that they provide you with bank statements or a written verification from a CPA who regularly audits their accounts. Please do not rely solely upon an internally generated ledger of your account as it is far too easy for an agency to manipulate a QuickBooks or PeachTree accounting ledger to reflect funds that no longer exist.
  • Make sure you are represented by independent counsel. Do not allow the agency to unilaterally appoint an attorney on your behalf or that of your surrogate. Select a qualified, experienced and independent attorney to represent your interests, oversee the process and advocate on your behalf.
  • Educate yourself on the professional and ethical guidelines that exist to protect you. Resources such as the American Society of Reproductive Medicine and the Society for Assisted Reproductive Technology are invaluable resources. Do not take an agency’s representations that they adhere to these organizations guidelines at face value. Confirm with your doctor, attorney or mental health professional that all protocols are being adhered to.
  • Visit the agency’s office. Too many shady agencies operate behind fictitious addresses or Post Office boxes. If the agency is unwilling to disclose their office address and/or allow you to visit, you have just been presented with a major red flag.
  • The aforementioned list is not meant to be exhaustive. Rather, it should be used solely as a starting point. I have quickly posted it so as to address some of the concerns I have heard this afternoon from worried Intended Parents and Surrogates who are anxious given the recent scandals that have come to light. Also, please do not automatically assume the worst if you hear a rumor about your agency. Often times when scandals like this hit the news, there is more smoke than fire. Sometimes it is misinformation being used to gain a competitive advantage by a competing agency.

    However, if you believe that something inappropriate is taking place with your agency, contact your independent attorney immediately. Demand an immediate accounting of your trust funds. If the funds are being held by the agency, insist that they be immediately transferred to a licensed and bonded escrow company. If necessary, contact local law enforcement to mitigate your damages.


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