In the national furor generated by that case -- which the surrogate lost -- dozens of state legislatures debated the legality of surrogacy. Michigan, New York and several other states outlawed compensation for surrogates. Many other countries followed suit.
California, however, embraced surrogacy, minimizing legal hassles to make the state a magnet for aspiring parents from around the world.
More than a third of the 1,042 in vitro fertilization procedures nationwide using gestational surrogates -- women who are unrelated to the babies they deliver -- took place in California in 2006, according to the most recent data available from the U.S. Centers for Disease Control and Prevention.
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A perilous path to parenthood
"We're not wealthy people. We saved for years to do this," said 37-year-old Beth Mardones, a former client of SurroGenesis, which recently was accused of being unable to account for more than $2 million of clients' funds. Many couples have filed police reports alleging fraud, and dozens have hired attorneys in preparation for possible lawsuits.
Mardones and her husband, Marcio, who live in a suburb northwest of Chicago, estimated they had $22,000 left in their SurroGenesis account after three unsuccessful attempts at in vitro fertilization with a surrogate.
"It's just incredibly disheartening that someone can be so dishonest and manipulative," said Beth Mardones, who had her uterus removed as a result of cancer.
An attorney for SurroGenesis' owners declined to comment.
Kathryn Kaycoff Manos, president of the Agency for Surrogacy Solutions in Encino, defended her field, saying that "many agencies are run by reputable people seeking to service both the surrogates and intended parents with compassion and integrity."
"There are thieves committing fraud and stealing money from innocent people in every human endeavor where money is exchanged," she wrote in an e-mail. "But does one Bernie [Madoff] reflect a totally corrupt industry? I think not."
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'A buyer-beware situation'
At the very least, the inexperience of the people who often get into the business and the lack of oversight can be frustrating and costly.
Customers ultimately must approve the surrogate, after a medical screening by their fertility doctor. But it can take several tries -- and several months -- to find a suitable candidate.
