In a dramatic turn of events, the FBI has taken a hard look at a prominent surrogacy agency that abruptly shut its doors last month, leaving clients and surrogates scrambling for missing money and unclear next steps. The agency, Surro Connections, once touted as a top-tier provider, is now the subject of an intensive surrogacy agency FBI investigation that has sent shockwaves through the fertility community worldwide.
Background / Context
Surro Connections was founded in 2010 by Megan Hall‑Greenberg, 49, and claimed to operate with a sophisticated in‑house escrow system that kept intended parents’ funds safe and readily available for surrogate compensation and medical expenses. Over the years, the agency built a reputation for personalized service, a hands‑on approach, and a “one‑stop shop” model that avoided third‑party escrow fees. The company serviced clients across the United States and internationally, including a growing number of students and professionals who sought surrogacy services abroad.
However, the agency’s model—using an internal escrow account rather than an independent third‑party provider—has been a red flag for regulators and industry watchdogs. In the past decade, at least four high‑profile cases have seen surrogacy agencies lose or divert funds entrusted to them, prompting calls from the Society for Ethics in Egg Donation and Surrogacy to use only insured third‑party escrow services. Despite these warnings, Hall‑Greenberg convinced many prospective parents that her in‑house account offered safer, faster disbursements.
Key Developments
On December 5, the company released a terse email to all intended parents announcing “ceasing all operations due to financial and operational difficulties” and claiming it had “no liquid capital” to repay clients. That same day, Hall‑Greenberg deleted her social media accounts and stopped responding to messages—a move that left 150 families, many of whom had already transferred between $2 million and $5 million to the escrow, perplexed and helpless.
The following morning, federal agents descended on Hall‑Greenberg’s residence in Washougal, Washington, and the Camas headquarters of Surro Connections. Local neighbors reported seeing FBI officers escorting an unidentified individual in a car from the agency’s office, though the agent’s identity was not confirmed. Sources say the FBI is conducting a full investigation into alleged financial fraud and potential breach of federal escrow regulations.
Former employees have corroborated an abrupt shutdown of company systems. “I suddenly lost access to our email, invoicing software, and all client records,” said Sarah Shaffer, the agency’s former marketing manager and lead surrogate coordinator. “It felt like we had been locked out of our own documents.” The absence of a single employee’s response further deepened the crisis.
At the center of the allegations is the agency’s escrow management. While Hall‑Greenberg claimed the funds were held at a bank insured by the FDIC, many clients, including international students and expatriates, had placed their life savings into the account. One notable case involved Mariana Klaveno, a 46‑year‑old actor from Los Angeles, who had deposited more than $66,000 for an embryo transfer scheduled for early January. She reports that her surrogate notified her that other surrogates were not receiving payments and that she could no longer contact Hall‑Greenberg.
Financial scrutiny has also turned to Hall‑Greenberg’s personal history. Public records reveal she owed Oregon more than $84,000 in unpaid taxes and had taken out multiple loans to fund both her cheerleading gyms and Surro Connections. A 2024 court order mandated a $70,000 payment to American Express, and she had recently sold a percentage of the agency’s future revenue for $15,000—an arrangement that ended in litigation that was abruptly dropped a month later.
Impact Analysis
For families awaiting a new child, the fallout is immediate and profound. Intended parents have spent an average of $100,000 on surrogacy services, with significant sums earmarked in escrow to cover surrogate compensation and medical fees. The loss of $2 million to $5 million in escrow funds threatens not only the financial stability of these families but also the emotional toll of an interrupted journey to parenthood.
Surrogate parents face similar hardships. Over 40% of surrogates in the U.S. report irregular or delayed payments, and this agency’s failure to honor its obligations can deter willing surrogates from considering future placements. The fallout has also prompted other agencies to reassess their escrow handling, potentially tightening service requirements for prospective parents.
International students and professionals who rely on the U.S. surrogacy market for family planning now face heightened uncertainty. Many had planned to route funds through Surro Connections’ in‑house escrow to avoid foreign currency conversion costs. The sudden collapse of this channel not only jeopardizes those currently in treatment but may also influence future cross‑border surrogacy agreements, as embassies and consular services scrutinize the financial safety nets of agencies operating within their jurisdictions.
Expert Insights / Tips
Given the heightened risk unveiled by this investigation, experts advise prospective parents to adopt a multi‑layered approach to financial protection:
- Use a third‑party escrow provider: An independent, FDIC‑insured institution reduces the risk of internal mismanagement.
- Verify insurance coverage: Confirm that the agency has adequate malpractice and fiduciary insurance that includes escrow obligations.
- Request audit trails: Require regular, transparent updates on escrow balance and disbursement schedules.
- Engage legal counsel specialized in reproductive law: Even for international clients, local counsel can help navigate cross‑border escrow regulations.
- Maintain personal records: Keep copies of all contracts, payment receipts, and communication with the agency.
“The surrogacy industry is under increasing scrutiny, and this case underscores the need for stringent oversight,” says Dr. Evelyn Park, a reproductive health analyst with the Institute for Ethics in Fertility. “Parents should make escrow a non‑negotiable clause and audit it regularly.”
For international students, Dr. Park recommends establishing a dedicated account with a reputable bank in the host country, where transfers can be monitored by a local bank’s correspondent partners. Additionally, students should consider enrolling in international health insurance that covers reproductive services, thereby safeguarding their investment through a global safety net.
Looking Ahead
The ongoing FBI probe may lead to a comprehensive review of surrogacy regulations across several states. Some legislators are already drafting bills that mandate independent escrow management and stricter financial reporting for surrogacy agencies. There are also discussions about establishing a national database of licensed surrogacy firms, thereby increasing transparency for prospective parents nationwide.
Meanwhile, agencies that were not in the spotlight are proactively seeking to rebuild trust. Some have partnered with reputable escrow companies, and the American Surrogacy Association is releasing updated guidelines that stress fiduciary accountability. The industry’s response to this scandal will likely shape the future expectations of both intended parents and surrogates.
International students and other prospective parents looking to work with U.S. agencies must recognize that regulatory oversight is evolving. The FBI’s involvement signals that federal authorities are now actively monitoring financial practices within the fertility sector—a development that could reduce fraud but also increase compliance costs for agencies, potentially raising fees for international clients.
Ultimately, the Surro Connections collapse has highlighted the critical importance of escrow integrity in surrogacy. Prospective parents are urged to remain vigilant, stay informed about regulatory changes, and prioritize agencies with a demonstrated commitment to ethical financial practices.
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