Status as of [date], reviewed by [attorney name], [firm]. Every statement on this page about SEAM is pending review by counsel against public court filings and named news reporting.
This page explains what is publicly known about the SEAM escrow failure and what it teaches about choosing an escrow provider. It is written by Nancy Block, RN, a former President of SEEDS, the Society for Ethics in Egg Donation and Surrogacy. It is not legal advice.
What was SEAM and how many journeys did it hold?
SEAM (Surrogacy Escrow Account Management) was a Texas escrow company that held funds for surrogacy journeys. It held escrow for thousands of journeys, routed to it by agencies across the country.
SEAM was not an agency. It was an escrow company that many agencies used. That is why its failure reached journeys nationwide at once: families who had never heard its name found out their money was there only when payments stopped.
What is known about how the money went missing?
SEAM collapsed in 2024 with more than $16 million in client funds missing, according to public reporting.
How the money went missing is a question for the court record. This page will describe it only once counsel has reviewed the filings and the named reporting. What can be said without waiting is the general lesson. When the people whose money it is cannot confirm their balance with the bank or a regulator on their own, a shortfall can grow for months before anyone outside the company sees it.
| Date | Event | Source | Status |
|---|---|---|---|
| 2024 | SEAM collapses; client funds reported missing | [news outlet, headline, date] | Status as of [date] |
| [date] | [legal action, to be added after counsel review] | [court filing] | Status as of [date] |
What happened to surrogates and parents mid-journey?
Surrogates stopped receiving compensation mid-pregnancy. For a surrogate, that means monthly allowance, base compensation and expense reimbursements stop arriving while the pregnancy, the appointments and the travel continue. For intended parents, it means money already deposited is not available, and the obligations in the gestational carrier agreement still stand.
Families in that position face a hard choice: pay the surrogate again out of pocket, or leave her without the payments she was promised. Most of the people affected had done what they were told to do. They used escrow. The problem was which escrow, and how it was controlled.
What legal action followed?
Legal action following the SEAM collapse will be summarized here, with court names, case numbers and dates, after counsel review. Status as of [date].
If you were affected, your attorney can tell you whether there is a claim process and how to take part in it. In the meantime:
- Gather your records: the escrow agreement, every statement, wire confirmations and correspondence.
- Write down what was paid out and what was not, line by line against the payment schedule in your gestational carrier agreement.
- Talk to your surrogate and her attorney directly. Make sure her health insurance is active and her medical care is not interrupted.
- Do not deposit replacement funds with any holder you have not verified using the questions at the end of this page.
What controls would have stopped it?
The lesson of SEAM is not that escrow is unsafe. It is that an escrow holder must be licensed, bonded, audited and verifiable by the parties, and that funds must sit in segregated accounts in the parties' names. Each of those controls closes a specific gap.
| Control that failed at SEAM | What it should look like | How to verify it with your provider |
|---|---|---|
| Independent verification of balances | You can confirm your balance with the escrow company directly, and the bank is named | Log into the portal or call on a number you found yourself; ask for the bank's name |
| Segregated accounts in the parties' names | Funds held for you and your surrogate, separate from the company's own money | Ask for the exact account name and confirm it in writing |
| Licensing and regulatory oversight | A state escrow or trust license, subject to examination | Look up the license number on the regulator's website |
| Bonding | A bond that provides a source of recovery if funds are mishandled | Ask for proof of the bond and its amount |
| Outside audit | Books checked by an independent auditor on a schedule | Ask who audits the company and when the last audit was |
| Dual authorization | Two people approve every disbursement | Ask how many people sign off on a payment |
Some of these controls may have existed at SEAM in some form. Counsel will confirm which ones failed. The point for you is the right-hand column: each control is something you can check yourself before you deposit, without relying on the agency's word or the escrow company's marketing.
For the mechanics of a sound arrangement, see how independent escrow works.
How did PLS and the industry respond?
PLS has never used an agency-affiliated or unlicensed escrow holder. It has always referred families to independent licensed escrow agents, and parents may choose their own escrow company. After SEAM, PLS reviewed its referred escrow providers against the controls above.
Whether any PLS client had funds at SEAM: [CONFIRM WITH NANCY: state yes or no explicitly].
The structure at PLS is the same for every family. You fund an independent licensed escrow agent: $10,000 at match and the balance before medications start. Statements come from the escrow agent, not from PLS. PLS cannot move your money. Read how to verify your escrow balance for the monthly checks we ask every family to run.
Across the industry, SEAM and then the Surro Connections collapse in late 2025 changed the first question families ask. It used to be "how much?" Now it is "who holds the money?" That is the right order. See what happened at Surro Connections.
What questions does SEAM tell you to ask any escrow provider?
Ask these before you send a dollar, and get the answers in writing:
- Which state licenses you, and what is your license number?
- Are you bonded, for how much, and can I see proof?
- Who audits you, how often, and when was the last audit?
- Is our money held in a segregated account in the parties' names? At which bank?
- Will you send statements directly to us every month, and a notice for each payment?
- Can we log in or call you directly to see our balance?
- How many people approve each disbursement?
- Does anyone at the surrogacy agency own part of your company, share your office, or have authority over our account?
- What happens to our money if the agency fails? If you fail?
- What do you charge, and how is your fee paid?
Keep the written answers with your escrow agreement. If anything changes during the journey, such as a new bank, a new owner or a new account number, ask the provider to tell you in writing and confirm it by phone. A provider that answers all ten clearly is doing the work. A provider that hesitates on any of them has told you something. For the agency side of the same questions, see money questions to ask before signing.
If you are already in a journey and these questions worry you, SurrogacyHotline.com, PLS's sister site, answers free, usually within 24 to 48 hours.
Sources
- [News reporting on the SEAM collapse: outlet, headline, date.]
- [Court filings related to SEAM: court, case number, date.]
- SEEDS, Society for Ethics in Egg Donation and Surrogacy.
- Private Label Surrogacy escrow policy.