An Annapolis-based surrogacy service provider collected as much as $100,000 in fees and then failed to provide the promised services to patients, Attorney General Brian E. Frosh’s office alleged in two actions announced Tuesday.
Surrogacy is an arrangement in which a woman agrees to become pregnant and to give birth to a child for another person who is or who will become the parent of the child. Employing the services of a surrogate is an option for people for whom it is medically impossible or difficult to become pregnant or to undergo a pregnancy.
The Surrogacy Group LLC sold surrogacy services to consumers in Maryland and other states and collected initial fees of between $12,000 and $20,000; more money was held in escrow to pay for medical expenses and other fees for surrogate mothers, according to a news release from the attorney general’s office.
The Surrogacy Group is charged with repeatedly failing to provide promised surrogacy services and also with using the money for company owner Greg Blosser’s personal benefit, according to the attorney general’s office.
The Surrogacy Group said late Tuesday that it was aware of the charges.
“We are looking into this matter & we are confident that it will be resolved quickly,” The Surrogacy Group said in an emailed statement.
On Monday, Anne Arundel Circuit Judge Michael Wachs issued a temporary restraining order against Blosser, barring him from selling any more surrogacy-related services to Maryland consumers and from collecting money from Maryland consumers. A hearing is scheduled for next Monday to determine whether the order should stay in place until administrative charges are resolved.
A hearing on the administrative charges brought by Frosh is scheduled for July 9.
The state alleges the Surrogacy Group’s practices violated the state Consumer Protection Act.
“Surrogacy Group has been charged with preying on peoples’ hopes of parenthood for financial gain,” Frosh said in the news release. “Blosser and his company are barred from victimizing others, pending further hearings.”
The state wants Blosser to stop engaging in unfair and deceptive trade practices, to repay consumers who sought the company’s services, and to pay economic damages and court costs, including the cost of the investigation, according to the statement of charges.
This story has been updated.