Surrogacy Scandal: Houston Firm Faces Lawsuit over Embezzlement of Millions to Fund Lavish Trips and Rap Career of Alleged Owner
After weeks of speculation regarding the fate of funds entrusted by parents to pay their surrogates, a recently amended lawsuit claims that a Houston-based surrogacy escrow management company has been misusing millions of dollars to support its owner’s rap career and extravagant lifestyle.
Surrogacy Escrow Account Management LLC, also known as SEAM, and its owner Dominique Side, have recently become unresponsive. It seems that the company suddenly closed down in mid-June, citing legal actions as the reason for suspending operations.
On Tuesday evening, KPRC 2 reported that 23 families from various parts of the United States, along with one family from France and one from Italy, have recently joined a lawsuit against SEAM and Side. These families are seeking compensation for their losses, which total just over $1 million.
“As we uncover each layer in this case, we continue to uncover more disturbing actions driven by selfishness and avarice,” commented Marianne Robak, a partner at Shackelford Law Firm.It’s truly disturbing to consider how certain individuals can rest peacefully, despite having swindled millions from unsuspecting individuals and, in certain instances, completely shattered their victims’ dreams of starting a family. It’s really disgusting.
According to records, SEAM has allegedly been using the intended parents’ funds for their own benefit, leading to accusations of wrongful enrichment by Dominique and her business partners, Anthony Hall, Fredrick Denson, and Kevin Yancy.
The lawsuit alleges that over $2.2 million of the parents’ money was used to support her music career as ‘Dom,’ a provocative rap and R&B artist and music producer.
According to reports reviewed by Click2Houston, Side informed Capital One Bank on June 17 of her intention to close all of SEAM’s bank accounts, stating that she no longer has a need for those funds.
Lawyers representing the victims obtained bank records that uncovered SEAM’s transfer of over $6.2 million from the intended parents’ escrow funds to support Side and Hall’s music studio, Vgn Bae Studios.
According to records, the studio, situated at 7800 Amelia Road in the Spring Branch area, holds an estimated value of $700,000 to $1.3 million in music equipment and other fixtures.
According to bank records, SEAM made several significant property purchases in recent years. These include acquiring land in Houston valued at a minimum of $575,000 in 2019, constructing a custom home in New Orleans worth approximately $300,000 in 2023, and buying a property on Winton Street in Houston under the name of the music studio, which was valued at around $433,000.
In addition, a portion of the funds reportedly went to Nikki Green, LLC, a designer clothing company owned by Side, Hall, and Christopher Thompson.
In October 2023, it was reported that the company unveiled its clothing line at a prestigious event, Las Vegas Fashion Week. According to records, the LLC used funds from the intended parents to cover the expenses for the apparel showcased.
According to records, Denson received around $750,000 while owning SEAM until 2017. This payment seems to be a “kickback” related to the monthly escrow funds that SEAM received. These transfers were not known or authorized by the intended parents.
Another lawsuit was filed on Friday in Harris County by a Houston attorney named Cody Dumas. The lawsuit represents an alleged victim from Dallas. Dumas informed KPRC 2’s Bryce Newberry that his firm has been in contact with almost 100 individuals who claim to be victims, hailing from various locations around the world, such as France and Asia.
Lawyers involved in the case have stated that a hearing for a temporary injunction is set to take place on Wednesday. This hearing will determine whether the assets that have been frozen will continue to remain frozen until the investigation concludes.
