Allison Layton, who defrauded and embezzled would-be parents of their life savings, was sentended today:
The owner of a Glendora egg donation and surrogacy company was sentenced Monday to a year and a half in federal prison for cheating would-be parents, egg donors and surrogates out of nearly $270,000. Allison Layton, 38, was also ordered to serve three years of supervised release after she is released from prison. A restitution hearing was set for Oct. 22.
Layton, who also used the name Allison Jarvie, pleaded guilty in February to a federal wire fraud charge. She owned Miracles Egg Donation, which claimed to handle the logistics of the donation and surrogacy process, and operated it out of her living room, according to the U.S. Attorney’s Office.
Between August 2008 and January 2012, would-be parents — who in the surrogacy and egg donation world are known as intended parents — paid thousands of dollars for egg donation and surrogacy services that Miracles promised to coordinate, federal prosecutors said. Layton took tens of thousands of dollars from intended parents. But instead of putting the funds into escrow accounts to be withdrawn only for certain costs related to surrogacy or egg donation, she used the money for her own personal expenses or to cover unpaid costs related to other clients, according to the U.S. Attorney’s Office.
As a result of Layton’s misappropriation of client funds, egg donors, surrogates, attorneys and others often weren’t paid for all the services they provided, and intended parents often did not receive all the services for which they had paid, according to court documents. At least one investor in Miracles also lost money.
When the donors, surrogates and intended parents sought to recover their money and costs, Layton would lull them into believing they would be repaid through false assurances that payments had already been made or would be made soon, court papers show.