WSJ Highlights Financial Fraud Allegations in Commercial Surrogacy Cases

The Wall Street Journal recently published a column highlighting allegations of financial fraud among commercial surrogacy businesses.

Commercial surrogacy is a practice where companies and wealthy couples pay women thousands of dollars to carry children for them.

Social commentators and policymakers worldwide have raised concerns about how commercial surrogacy financially pressures women into providing children for paying customers.

Now The Wall Street Journal reports that some commercial surrogacy companies have allegedly mishandled customers’ money.

Calling the industry “almost entirely unregulated,” The Wall Street Journal writes,

Escrow companies, used in the majority of surrogacies, can handle millions of client dollars with almost no oversight, according to a Wall Street Journal review of court filings and interviews with parents and surrogates. . . .

In one case earlier this year, a surrogacy company owner pleaded guilty to wire fraud after prosecutors said she used client escrow money to fund a yoga and flotation chamber business and other personal expenses. An employee at another company stole $2.7 million to feed an online gambling habit. Yet another used parents’ funds to buy bitcoin.

As we have said before, it’s bad when commercial surrogacy goes wrong — but it’s important to remember that surrogacy never “goes right” either.

Commercial surrogacy treats women like commodities, and it treats children like products that can be made to order and sold for profit.

It denies children the opportunity to be raised by their biological mom and a dad.

In California, surrogate Brittney Pearson’s story shows some of the problems associated with surrogacy.

After Pearson was diagnosed with an aggressive form of cancer, doctors recommended inducing labor early and caring for the baby in the NICU while she started chemo. However, that isn’t what the same-sex couple paying Brittney Pearson as their commercial surrogate wanted.

Even though she was 24 weeks pregnant and the baby might have been able to survive outside the womb, the men wanted Brittney to have an abortion. If the baby were born alive, the men asked that no life-saving measures be taken for the baby.

With her cancer having spread to her liver, Pearson found a hospital to induce birth. The child died shortly after being born on Father’s Day, June 18, 2023.

All of this was made possible by state laws that facilitate commercial surrogacy and treat the intended parents in surrogacy arrangements as the legal parents of the child.

Stories like this one underscore why Family Council has opposed commercial surrogacy in Arkansas. Unfortunately, Arkansas’ commercial surrogacy laws are very lax.

Since 2017, Family Council has supported legislation to prohibit commercial surrogacy in Arkansas. So far, those restrictions have not passed.

Human beings are not products that can be bought or sold. That’s why Family Council opposes commercial surrogacy — and will continue to oppose it.

Articles appearing on this website are written with the aid of Family Council’s researchers and writers.

Arkansas Named Most Pro-Life State in America for the Sixth Year in a Row

Little Rock, Ark. – On Monday Americans United for Life announced Arkansas is the most pro-life state in America for the sixth year in a row. The pro-life organization ranks all fifty states based on state laws protecting the unborn, the elderly, the disabled, and the terminally ill.

Family Council President Jerry Cox released a statement, saying, “Today Americans United for Life recognized the many pro-life laws and policies our state has enacted over the years. Arkansans should be proud of their state legislators for passing the best laws in the nation when it comes to protecting unborn children, the elderly, the disabled, and the terminally ill. That’s something to celebrate.”

Cox pointed out that most Arkansans are pro-life and do not support abortion on demand. “Long before Roe v. Wade was overturned, Arkansas’ abortion rate had plummeted to historic lows. Public opinion polling has shown for years that Arkansans do not support abortion on demand, and more than forty pregnancy resource centers around the state help women and girls with unexpected pregnancies. Arkansas is the nation’s most pro-life state, because Arkansans themselves are deeply pro-life.”

Cox noted that making Arkansas a pro-life state has taken a lot of work by many different people. “Arkansas Right to Life has been defending human life for fifty years, and Family Council has been at it for nearly thirty-seven. Arkansas’ General Assembly has passed at least sixty-five good, pro-life measures since 2011. Ministers, churches, elected officials, pregnancy resource centers, and everyday Arkansans all have worked tirelessly to make Arkansas the pro-life state that it is today. Being pro-life is about much more than opposing abortion. Now that Roe v. Wade has been overturned and abortion in Arkansas is prohibited except to save the life of the mother, the pro-life movement in Arkansas has entered a new phase. We are focused on helping women and families with unexpected pregnancies, and we are making sure our laws respect and protect innocent human life at every stage from conception until natural death. We look forward to continuing that pro-life mission in 2026.”

###