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AG orders former surrogacy firm to pay $2M in penalties and fees

Attorney General Brian Frosh. (File photo)

Maryland Attorney General Brian E. Frosh. (The Daily Record/File photo)

The Maryland Office of the Attorney General ordered an Annapolis-based surrogacy company facing state and federal investigations for defrauding customers to pay more than $2 million in penalties and restitution Wednesday.

The state issued a final order against Greg Blosser and his company, The Surrogacy Group LLC, for violating the Maryland Consumer Protection Act by selling surrogacy services they did not provide, according to a news release from the Attorney General’s Office.

An Anne Arundel County judge issued a preliminary injunction in April barring the company from selling any further services from Maryland or to Maryland residents, according to the release.

The final order includes a permanent injunction and requires the company to pay a $1,479,000 penalty and return all money collected from customers who did not receive promised services. At a hearing, 21 customers testified that they were collectively owed more than $600,000 for payments made to the company and many testified about the emotional harm they sustained by spending years relying on Blosser’s company to help them try to have children.

“As the owner of The Surrogacy Group, Greg Blosser deceived and defrauded people who placed their dreams of parenthood in his hands,” Attorney General Brian E. Frosh said in a statement. “Blosser victimized these intended parents for his own personal financial benefit. This order bars Blosser and his company from harming any other Maryland consumers.”

The company sold surrogacy services to consumers in Maryland and other states and collected initial fees of between $12,000 and $25,000; more money was held in escrow to pay for medical expenses and other fees for surrogate mothers, according to the release. Blosser then used the payments for personal purchases.

Blosser is also facing federal wire fraud charges in U.S. District Court in Baltimore. 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.

Blosser faces up to 20 years in prison if convicted of wire fraud.

Several customers have also filed civil suits in Maryland courts that have resulted in default judgments, according to electronic court filings.

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