Judge allows Houston surrogacy company’s assets to be frozen pending investigation

HOUSTON – A temporary injunction has been granted by a judge in a lawsuit against Surrogacy Escrow Account Management LLC, also known as SEAM, and its owner, Dominique Side.

The company and Side are accused of embezzling millions of dollars meant for intended parents to pay surrogates. The documents allege that the missing money was diverted and used to fund Side’s rap career and lavish lifestyle.

The injunction will ensure that temporarily frozen assets from SEAM’s accounts will remain frozen until the investigation is complete,

In a presentation before a judge on Wednesday, a forensic analysis of bank records revealed that more than $10 million in escrow money was funneled to other companies, to Side itself, as well as to Side’s business partners.

Anthony Hall, Side’s principal business partner, was the only person named in the complaint to appear before the judge Wednesday. Hall did not have legal representation because he said his funds had already been frozen, and had been since a temporary restraining order was granted. He said the funds were frozen while he was on a flight to Virginia and when he arrived, he couldn’t even order an Uber.

Hall told the judge he was also a victim in the case and didn’t know where the money came from, even though he allegedly benefited from it. He offered to help with the investigation and that any assets involved in the lawsuit under his name would be frozen and then used to repay the victims, according to the attorneys.

“We hope to obtain a final judgment on our client’s claims for breach of contract, fraudulent transfer and unjust enrichment, and place those funds in what’s called a trust for the benefit of creditors, who would be the intended parents,” said attorney Marianne Robak. “Once those funds are placed in a constructive trust by the court, we will work to recover, pay those funds to the intended parents and return them to their accounts.”

Side did not appear in court. Hall said he last spoke to her two days ago, asking how she was doing, and in a previous conversation he learned she would not be in court. Hall said she told him about the mismanagement of funds issue with SEAM when she left the music studio, Vgn Bae Music Group, where more than $6.2 million of the parents-to-be’s escrowed funds had been transferred from SEAM’s accounts, according to the documents. After Side left the studio, she turned it over to Hall, and he then changed the name of the company. Side also allegedly told Hall she had turned herself in to the FBI, but that claim has not been verified.

Side and SEAM have been in the spotlight for weeks, as families across the country and around the world accuse Side and the company of stealing funds meant to pay for surrogates. An amended complaint was filed Monday night in Harris County, raising for the first time allegations that Side misappropriated funds used to pay for her rap career.

On Tuesday, KPRC 2 learned that 23 additional families from across the country as well as one each from France and Italy have filed to participate in the lawsuit against SEAM and Side, seeking combined losses of just over $1 million.

A second lawsuit was filed Friday night in Harris County by another Houston attorney, Cody Dumas, on behalf of an alleged victim from Dallas. Dumas told KPRC 2’s Bryce Newberry that his firm has been in contact with nearly 100 alleged victims from across the country, including some in France and Asia.

If you have been affected by SEAM, the FBI still asks that any information be submitted using this online form.

KPRC 2’s Bryce Newberry has been covering this story from the beginning. If you have been affected, please do not hesitate to contact him via E-mail.