Surro Connections Executives Charged in Multimillion-Dollar Fraud and Money Laundering Case
Three people linked to U.S. surrogacy agency Surro Connections have been charged in a federal case alleging the misappropriation of millions of dollars entrusted by intended parents to cover surrogacy-related costs.
The U.S. Attorney’s Office for the Northern District of California said on August 26, 2026 that Megan Hall-Greenberg, 49, and Jeffrery Greenberg, 45, both of Washougal, Washington, and Heather Morgan, 47, of Camas, Washington, were charged with wire fraud and conspiracy to commit wire fraud. Hall-Greenberg and Greenberg were also charged with money laundering and conspiracy to commit money laundering.
Escrow funds allegedly diverted
Surro Connections collected and held funds from clients, often exceeding US$100,000 per client, to pay legal fees, medical expenses, surrogate compensation, travel and other costs. Prosecutors allege that the defendants concealed the diversion of those funds while telling clients their money remained safely held in escrow.
According to the indictment, Hall-Greenberg and Greenberg spent more than US$1.1 million in allegedly misappropriated funds on personal expenses, including gambling debts, cruises, a vacation at an adults-only resort in Mexico and trips to Las Vegas. They are also alleged to have spent more than US$60,000 on luxury goods including Louis Vuitton handbags, Bucherer, Rolex and LVMH watches, diamonds and other jewellery.
For more than 19 months, prosecutors allege Hall-Greenberg, Greenberg and Morgan tried to conceal the shortfall. Hall-Greenberg and Morgan allegedly sent clients balance statements that falsely represented their funds as remaining in escrow even though the accounts had been substantially depleted.
High-interest borrowing used to delay collapse
The indictment alleges the escrow account was effectively empty and that the defendants used more than US$4.7 million in high-interest loans, incoming client payments and credit cards to pay outstanding expenses and postpone the company’s collapse. On December 5, 2025, Hall-Greenberg allegedly informed intended parents, surrogates and employees that Surro Connections was ceasing operations immediately and could no longer perform its contractual obligations.
The defendants are scheduled to make an initial appearance in federal court in Oakland on September 3, 2026. Wire fraud and conspiracy counts carry a maximum sentence of 20 years, while the money-laundering counts carry a maximum of 10 years. Potential forfeiture and restitution may also apply.
The charges are allegations. All three defendants are presumed innocent unless proven guilty beyond a reasonable doubt. The case is being investigated by the FBI.
The case highlights the financial-crime risks that can arise when client money is pooled and controlled through escrow-like arrangements with weak segregation, governance or independent oversight.
