The owner of an Annapolis-based surrogacy service provider already facing charges from the Maryland Office of the Attorney General was charged federally on Thursday for allegedly defrauding clients.
Gregory Ray Blosser, owner of The Surrogacy Group LLC, was charged with wire fraud for obtaining money from seven clients who sought surrogacy services and failing to provide them, according to a news release from the Maryland U.S. Attorney’s Office. The criminal complaint was filed April 29.
Maryland Attorney General Brian E. Frosh previously announced that Blosser had been charged with violations of the Consumer Protection Act. Blosser is also facing charges in Florida, where he resides.
The company 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 an April 23 news release from the attorney general’s office.
Blosser consented to an injunction barring him from selling any more surrogacy-related services to or collecting money from Maryland consumers pending the outcome of the state’s case, according to a spokeswoman for the attorney general.
The federal charges allege that victims from Maryland, Virginia, North Carolina, Germany and Australia deposited funds into an escrow account to be controlled by Blosser but that he never located surrogates or returned money despite repeated calls and emails from clients.
“The allegations in this case are especially egregious because they involve someone taking advantage of individuals who are trying to become parents,” U.S. Attorney Robert K. Hur said in a statement. “Criminals who line their pockets through such heartless deceit will be held accountable.”
Blosser had an initial appearance in U.S. District Court in Miami on April 30 and was ordered to be detained pending a detention hearing on Friday. He is expected to have an initial appearance in Maryland later this month.
Blosser faces up to 20 years in prison if convicted of wire fraud. In its civil action, Maryland is seeking restitution to victims, costs and penalties for the alleged violations of the Maryland Consumer Protection Act.