The Justice Department announced charges on Tuesday against Megan Hall-Greenberg, owner of Surro Connections, a Washington State-based surrogacy firm, accusing her and associates of embezzling more than $1 million from clients. The firm, which abruptly ceased operations in December 2025, left numerous intended parents without the funds they had entrusted for surrogate payments.
Surro Connections had been considered a reputable agency serving hundreds of clients internationally before its sudden closure. Many families, some interviewed during an earlier investigation, reported losses ranging from $20,000 to $81,000. Several parents-to-be resorted to loans, assistance from relatives, or liquidating long-term savings to manage the unexpected financial setback.
According to the indictment, Hall-Greenberg and her husband, Jeffrey Greenberg, diverted client funds to cover personal expenses, including gambling debts, luxury purchases such as Louis Vuitton handbags and Rolex watches, and travel to cruise destinations and a resort in Mexico. Additionally, over $300,000 was allegedly funneled to a cheerleading gym owned by Hall-Greenberg. Jeffrey Greenberg, along with Heather Morgan, who served as the company’s business manager, face multiple felony charges including wire fraud.
Typically, surrogacy agencies are required to hold client funds in third-party escrow accounts to ensure proper allocation and safeguard against misuse. However, Surro Connections reportedly diverged from this practice. Hall-Greenberg allegedly prompted clients to send their payments directly to a single account at a local Wells Fargo branch rather than to an independent escrow service. Clients were led to believe their money was secured in individual accounts, but the indictment points to falsified account statements and significant discrepancies. For example, one client was provided a statement indicating an “available balance” of approximately $32,000, while the actual funds in the account stood at just 33 cents.
The complaint details multiple transfers of funds from company accounts into Hall-Greenberg’s personal checking account and subsequently into an account tied to her husband’s auto repair business. Financial difficulties surfaced publicly in the fall of 2025 as the couple faced several debt collection lawsuits. In an effort to sustain the firm, they secured about $4.7 million in loans and cash advances.
Despite these efforts, the company exhausted its resources by early December. On December 5, Hall-Greenberg informed clients and surrogates via email that Surro Connections was shutting down due to “financial and operational difficulties” and stated the firm lacked the means to refund clients.
Representatives for Hall-Greenberg, Jeffrey Greenberg, and Heather Morgan were not immediately available for comment following the announcement of the charges. It remains unclear if the surrogates who were carrying pregnancies at the time of the shutdown received any compensation.