A set of handcuffs is pictured.
San Diego, California – Lillian Arielle Markowitz, former owner of three San Diego-based surrogacy consulting companies, was sentenced on Friday to 24 months in federal prison for orchestrating a fraud scheme that stole hundreds of thousands of dollars from hopeful parents.
U.S. District Judge Todd W. Robinson handed down the sentence and ordered Markowitz to pay $389,142 in restitution to her former clients. Many of them had entrusted her with their life savings to start or grow their families.
According to court documents, Markowitz operated three surrogacy-related businesses — My Donor Cycle, Surrogacy Beyond Borders, and Expecting Surrogacy — where she marketed herself as a trusted consultant for individuals pursuing parenthood through surrogacy. But starting around 2018, Markowitz turned to fraud as her businesses began to falter financially.
She submitted multiple fraudulent disbursement requests to an escrow company managing client funds, including one instance where she forged a client’s signature to access and steal funds. From 2019 through 2021, Markowitz admitted to defrauding at least nine additional clients by falsely assuring them their payments were securely deposited into escrow accounts to be used solely for surrogacy-related expenses.
Instead, prosecutors say Markowitz deposited the money into her business checking account and used it to cover unrelated business expenses, pay for other clients’ surrogacy costs, fund her lifestyle, and support a separate yoga and float business.
“Lillian Markowitz turned her surrogacy businesses into a Ponzi scheme,” said U.S. Attorney Adam Gordon. “She did not simply steal funds. She stole the dream of parenthood from her victims. She exploited hope and heartbreak for profit.”
Acting Special Agent in Charge Houtan Moshrefi echoed those sentiments: “Today’s sentencing of Lilian Markowitz marks the conclusion of a cruel and deceitful scheme that deeply exploited the victims’ hopeful dreams of becoming parents. After years of deception, Ms. Markowitz will be held accountable for her egregious breach of trust and unethical conduct.”
Special Assistant U.S. Attorney Jeffrey D. Hill and Assistant U.S. Attorney Mark W. Pletcher prosecuted the case.
Markowitz’s victims, many of whom are now left emotionally and financially devastated, say they hope the sentence serves as a warning to others in the surrogacy industry and a measure of justice for those whose dreams were taken from them.
