Nearly 2 dozen children seized from Los Angeles couple accused of surrogacy scam

Authorities removed 21 children from the custody of a Los Angeles couple after discovering a surrogacy operation that allegedly deceived multiple surrogate mothers across the country.

Business busted: The investigation began in May when a 2-month-old baby was hospitalized with head injuries, prompting police to respond. Soon, officers discovered 15 more infants and toddlers under the care of six nannies at a nine-bedroom mansion in Arcadia. Surveillance footage revealed physical abuse of the children, including one nanny shaking the injured infant.

Guojun Xuan, 65, and Silvia Zhang, 38, were arrested May 9 on suspicion of felony child endangerment but released four days later without charges. Six more children were later removed from other locations, bringing the total to 21 children under 13 years old.

How the scheme ran: Xuan and Zhang operated their business, Mark Surrogacy, from their Arcadia home. Recruiting through Facebook, Zhang allegedly provided different accounts to various surrogates, telling some she had only one daughter. Court records, on the other hand, show she told a Los Angeles judge that she and Xuan had at least a dozen children.

Surrogates were allegedly paid tens of thousands of dollars each and told they were helping a couple struggling with infertility. Police had responded to at least six calls at the property since January 2022, including reports of suspected child abuse and illegal business operations.

The big picture: The case highlights regulatory gaps in the commercial surrogacy industry, particularly involving international clients seeking U.S. citizenship for newborns. Research shows that between 2014 and 2020, 41.7% of foreign intended parents using U.S. surrogacy services were Chinese nationals. Zhang told investigators she wanted many children after seeing how China’s one-child policy had damaged families.

What’s next: Authorities are still searching for 56-year-old Chunmei Li, the nanny who allegedly abused the hospitalized infant. The FBI has also joined the investigation, interviewing surrogates about potential baby-selling operations. At least two women reportedly remain pregnant with children arranged through Mark Surrogacy, with one surrogate considering legal options to become the child’s foster parent. Meanwhile, the injured baby remains in medical care, and the other 21 children in foster care, as investigation continues.