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We have been closely watching the case of the owner of The Surrogacy Group (TSG) in Maryland and Florida, who pleaded guilty in September 2020 to defrauding 44 intended parents and gestational carriers, absconding with more than $1.1 million. On April 21, 2021, 39-year-old Gregory Blosser was sentenced by a U.S. District Court Judge to 32 months in federal prison and three additional years of supervised release. The judge also ordered Blosser to forfeit $1,104,706 and pay additional restitution to the victims, to the tune of $1,194,519.54.
Blosser, who was arrested on April 29, 2019 – nearly two years before his sentencing – pleaded guilty to defrauding clients of TSG between 2017 and 2019 by misappropriating fees in escrow accounts that were intended to be used to pay expenses for gestational carriers. Rather than paying the fees to surrogates as he was legally bound to do under agreements with clients, he intermingled those funds with the general operating accounts for the company, using them to pay for the expenses of running the business. Ultimately, intended parents were on the hook to pay the expenses for their gestational carriers themselves – resulting in effectively paying twice for the services.
Victims of Blosser’s fraud spanned the globe, coming from Maryland, North Carolina and Virginia in the U.S., as well as from Germany and Austria.
This sentencing does not mark the end of Blosser’s legal woes, as he is currently facing civil suits in both Maryland and Florida. Another civil lawsuit settled in 2020, with Blosser agreeing to pay more than $2 million to 21 victims.
Knowing Blosser will be spending time behind bars may be a small comfort to the individuals and families whose trust he violated. This case is a sad reminder of the importance of doing due diligence before choosing a fertility clinic or other provider to help you start or grow your family. Contact us at The Surrogacy Law Center to learn more!