“These agencies, we’re supposed to trust them and follow their guidance and come to find out this whole thing was a scam, and the parents own the agency—that was not disclosed at all beforehand,” Kayla Elliott told ABC7 after discovering the baby she delivered was one of 21 children removed from a California couple’s home amid a storm of abuse and neglect allegations. For anyone considering surrogacy—whether as a surrogate, intended parent, or advocate—this story is a wake-up call about the urgent need for transparency and oversight in the U.S. surrogacy landscape.

The details are both shocking and heartbreakingly real. Women from Texas to Florida, each believing they were helping a couple grow their family, learned they were actually part of a much larger—and hidden—operation. Through Mark Surrogacy, these women were matched with Silvia Zhang and Guojun Xuan, a couple in Arcadia, California. But instead of a single, cherished child, authorities discovered 15 children living in the couple’s home and another six elsewhere, all under their legal guardianship (source). Most of the children were under three years old.
The scandal unraveled after a two-month-old baby suffered a traumatic head injury. Police say the nanny violently shook the infant, and the parents waited two days before seeking medical help. Surveillance footage reportedly revealed not just one, but multiple instances of emotional and physical abuse by at least six nannies (source). The couple was arrested on suspicion of felony child endangerment, but released as investigations continue. The children, now in foster care, are at the center of a growing federal probe.
For surrogates like Kayla, the emotional fallout is immense. She described the experience as “something almost unbelievable unless you’re living it,” and is now fighting for custody of the child she carried (source). Many surrogates only learned the true scope of the situation through online reviews and social media connections—underscoring the vital importance of due diligence before signing with any agency.
The case has spotlighted a glaring regulatory void. There are no federal laws governing surrogacy in the U.S.; oversight is left to individual states, creating a patchwork of protections and loopholes (source). In California, for example, anyone can open a surrogacy agency—there are no licensing requirements (source). While the state is generally considered “surrogacy-friendly,” this lack of oversight leaves both surrogates and intended parents vulnerable to fraud and exploitation.
For those considering surrogacy, experts recommend a few critical steps:
– Vet agencies thoroughly: Look for established agencies with transparent practices, clear contracts, and positive reviews from both surrogates and intended parents.
– Consult independent legal counsel: Don’t rely solely on agency-provided lawyers. Independent legal advice ensures your rights and interests are protected.
– Understand your state’s laws: Surrogacy laws vary dramatically by state. For example, California permits both pre- and post-birth parentage orders, while states like Michigan and Nebraska void surrogacy contracts entirely. Some states, such as New York, require agencies to be licensed and provide a “Surrogate’s Bill of Rights.”
– Insist on transparency: Agencies should disclose any conflicts of interest, including whether intended parents have ownership stakes.
The Arcadia case has also raised questions about the motivations behind large-scale surrogacy arrangements. “That to me smells of trafficking, child trafficking,” said Kallie Fell, executive director of the Center of Bioethics and Culture (source). While having many children through surrogacy isn’t illegal, the lack of oversight means that child welfare can easily fall through the cracks.
For surrogates, intended parents, and advocates, this story is a call to action: know your rights, ask hard questions, and demand accountability at every step. As the legal and ethical debates continue, the wellbeing of children and families must remain at the heart of every surrogacy journey.

