'Betrayed their trust and stole their money': Portland woman pleads guilty after defrauding surrogacy clients.

PORTLAND, Ore. (KOIN) – A Portland woman has pleaded guilty after defrauding several clients at her surrogacy consulting businesses, the U.S. Attorney's Office for the Southern District of California announced.

The case goes back to 2018, when 40-year-old Lillian Markowitz -- also known as Lillian Frost -- began experiencing financial distress at three of her San Diego-based surrogacy consulting businesses: My Donor Cycle, Surrogacy Beyond Borders, and Expecting Surrogacy, authorities said, noting Markowitz marketed herself as a surrogacy consultant.

From there, authorities said Markowitz created a scheme to steal money from her surrogacy clients by submitting fraudulent requests to the escrow company where her clients’ funds were maintained.

The Department of Justice said Markowitz admitted to submitting four fraudulent escrow disbursement requests from accounts of two couples.

One of the requests included “what Markowitz knew to be a forged client signature,” officials said, noting she received checks from the escrow company without the knowledge or consent of her clients.

Markowitz also admitted that beginning in January 2019 through May 2021, she defrauded nine other clients by falsely promising their funds would be put into an escrow account, which would only be accessed to pay for expenses for surrogacy services.

However, authorities said Moskowitz ended up depositing these client funds into a business checking account, and used the money to cover general business expenses, expenses for other client’s surrogacy services, and her personal expenses.

Markowitz pleaded guilty to fraud charges in federal court on January 23, and as part of her plea deal, agreed to pay restitution of at least $389,142 to her former clients.

Authorities noted the wire fraud charges can lead to a maximum penalty of 20 years in prison and a $250,000 fine.

“The path to parenthood through surrogacy can be fraught with emotional and financial challenges,” said U.S. Attorney Tara McGrath. “This defendant selfishly exploited vulnerable clients who were striving to fulfill their dream of becoming parents.”

FBI San Diego Special Agent in Charge Stacey Moy added, “Instead of aiding her hopeful clients on their path to parenthood, the defendant took advantage of their vulnerability, betrayed their trust, and stole their money."

Moy furthered that the FBI "will continue to investigate these unique fraud schemes to protect the public against those who employ empty promises and prey upon vulnerable individuals.”

Anyone who believes they may be a victim in this case is asked to contact the FBI San Diego Field Office.