Fraud & Safety
What the 14-count federal indictment means for intended parents and surrogates working with agencies today.
On August 25, 2026, a federal grand jury in the Northern District of California returned a 14-count indictment against Megan Hall-Greenberg, Heather Morgan, and Jeffrey Greenberg in connection with the collapse of Surro Connections, a surrogacy agency that operated out of Camas, Washington. The charges include conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and engaging in monetary transactions in property derived from unlawful activity.
The indictment, filed in the Oakland Division of the U.S. District Court (Case No. 4:26-cr-00427-AMO), lays out what federal prosecutors describe as a years-long scheme to misappropriate client escrow funds while concealing the losses through false representations and new incoming payments.
Here is what the indictment says, and what it means if you are currently working with a surrogacy agency or considering one.
Who Was ChargedAccording to the indictment, three individuals face federal charges:
Megan Hall-Greenberg was the owner and executive director of Surro Connections Inc. She resided in Washougal, Washington.
Heather Morgan was the business manager for Surro Connections. She resided in Camas, Washington.
Jeffrey Greenberg was Hall-Greenberg's spouse. He operated an auto repair business in Portland, Oregon. According to the indictment, escrow funds were allegedly transferred into the auto repair company's bank account.
The Scale of the Alleged FraudThe indictment describes an operation that, at the time of its collapse in December 2025, had over 400 intended parent clients and was supporting over 170 surrogates, at least 70 of whom were pregnant.
Surro Connections collected and held funds, often totaling over $100,000 per intended parent, in escrow accounts. These funds were meant to cover legal fees, medical costs, surrogate compensation, travel, and other expenses related to the surrogacy journey. The company's contracts represented, in writing, that these escrow funds would be used only for authorized payments.
How the Scheme Allegedly WorkedAccording to the indictment, the conspiracy began no later than August 2023 and continued until the company's abrupt closure on December 5, 2025. Federal prosecutors allege the following:
Incoming payments used to cover other clients' costs
The indictment describes a pattern where payments from one intended parent were diverted to cover expenses for a different intended parent, creating a structure that required continuous new funding to sustain.
False escrow balance statements sent to clients
In one instance described in the indictment, Heather Morgan emailed a client stating his escrow "available balance" was $32,378. According to prosecutors, the actual balance in the Surro Connections escrow account that day was 33 cents. In another instance two months later, the same client was told his available balance was $18,466.13 when the actual account balance was $10.87.
Escrow funds transferred into personal accounts
The indictment describes multiple instances where Hall-Greenberg transferred large sums from the escrow account directly into her personal checking account. In one instance, a client wired $54,372.65 into the escrow account, and that same day, Hall-Greenberg allegedly transferred $125,000 out of the escrow account and into her personal account.
Over three dozen credit cards and $4.7 million in loans were allegedly obtained to cover payments and bills that could not be paid because the escrow funds had been misappropriated.
Where the Money Allegedly WentThe indictment alleges that Hall-Greenberg and Jeffrey Greenberg spent over $1 million of misappropriated escrow funds on personal expenses, including:
Additionally, the indictment alleges that Hall-Greenberg misappropriated over $300,000 in Surro Connections funds to cover expenses related to her operation or ownership of multiple cheerleading gyms.
The Text MessagesAmong the most striking details in the indictment are text messages between the defendants. According to the filing:
On May 7, 2024, after a client's wire transfer arrived, Hall-Greenberg texted Jeffrey Greenberg: "Wire came in early. $14k in joint account."
On February 4, 2025, after a client sent a payment, Hall-Greenberg texted Greenberg that the client "sent full amount!" According to the indictment, Greenberg "loved" the message. That same day, Hall-Greenberg texted: "I will transfer $20k to joint now."
On March 6, 2025, after learning a client's wire was incoming, Hall-Greenberg texted: "if it's a wire, should be here any minute. I have to pay back [the auto repair company] but we will figure it out when it lands."
On December 11, 2024, as a client's payment was delayed, Hall-Greenberg texted: "Wire hasn't hit yet. My fucking chest hurts again."The Collapse
On December 5, 2025, Hall-Greenberg sent an email to Surro Connections intended parents and surrogates stating that "due to financial and operational difficulties" the company was ceasing operations immediately and that Surro Connections "has no ability to provide any further performance pursuant to any contractual or other Company obligations."
According to earlier news reports, Hall-Greenberg deleted her social media accounts and stopped responding to clients and employees as of December 3, 2025. FBI agents subsequently conducted searches of her home and the company's headquarters.
The ChargesThe indictment includes 14 counts:
The indictment also includes a forfeiture allegation seeking all property derived from the alleged offenses. The U.S. Magistrate Judge set no bail with summons.
An indictment is a formal accusation. The defendants are presumed innocent unless and until proven guilty in a court of law.
What This Means for Surrogacy FamiliesThis is not the first time a surrogacy agency has collapsed under allegations of escrow misappropriation. Gregory Blosser of The Surrogacy Group pleaded guilty to wire fraud. SEAM (Surrogacy Escrow Account Management) faced similar allegations. What these cases have in common is the same basic setup: the agency managing your journey was also the entity holding your money, with no independent oversight of either.
The Surro Connections indictment is detailed enough that it is worth reading if you are currently working with an agency or about to sign with one. A client was told his escrow balance was $32,378. The actual balance was 33 cents. The contracts said funds would be held in safekeeping. The indictment says the account had $10.87 in it when clients were told they had tens of thousands available.
The most direct protection is using an independent escrow provider that has no financial relationship with your agency. When the same organization manages your case and holds your money, you are relying entirely on their honesty with no external check. An independent escrow service removes that conflict. It is the one structural safeguard that would have protected Surro Connections clients if it had been in place.
From FamilyVale
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Learn more & join the waitlistIf you are working with an agency that holds your escrow, ask them directly: is this a segregated trust account, separate from operating funds? Can you show me the account balance independently? Who else has access? Most legitimate providers will answer those questions without hesitation. If the answer is vague, that is worth paying attention to.
It is also worth knowing that in most U.S. states, anyone can open a surrogacy agency. There are no licensing requirements, no mandatory audits of escrow accounts, no state oversight of how client funds are held. That is not a reason to avoid surrogacy, but it is a reason to have an independent attorney review your escrow agreement before you wire anything. An attorney who does not have a referral relationship with your agency will read that contract differently than someone who does.
FamilyVale is a community and resource platform for intended parents, surrogates, egg donors, and sperm donors. We provide independent guidance and support for families navigating the surrogacy journey. Learn more at familyvale.org
The full indictment (Case No. 4:26-cr-00427-AMO) is a public document available through the federal court system.