Guojun Xuan, 66, and Silvia Zhang, 39, appeared in court recently facing multiple charges related to allegations of child abuse and witness intimidation stemming from their operation of a surrogacy enterprise in Arcadia, California. The couple is accused of running a so-called "house of horrors" at their nine-bedroom mansion, where surrogate children were allegedly subjected to repeated physical abuse by several nannies under their direction. Xuan himself faces charges of administering one of the beatings. Both have pleaded not guilty and remain in custody with bail set at $20 million.
The case has drawn significant attention to how the couple managed to assemble a large number of surrogate children — reportedly more than 20 — over several years while evading intervention by authorities. From 2021 to 2025, Xuan and Zhang operated Mark Surrogacy Investments out of their Arcadia mansion, arranging surrogacy births almost exclusively for themselves. Legal experts note that unlike typical surrogacy arrangements where independent agencies conduct background checks and provide advocacy for surrogate mothers, the couple’s self-run firm avoided these safeguards, effectively insulating them from external scrutiny.
Prior to the current charges, Zhang was involved in a 2019 misdemeanor child abuse case after leaving her then-8-year-old daughter unattended in a hot car for several hours. She entered into a diversion program, completed it in 2023, and the case was ultimately dismissed. Two civil attorneys and a surrogacy lawyer highlighted that had a reputable surrogacy agency been involved, such past incidents likely would have precluded the couple's participation. Instead, by controlling the surrogacy business themselves, Xuan and Zhang bypassed standard protections designed to safeguard children and surrogate mothers.
The couple’s history also includes confrontations with neighbors and tenants. Records reveal allegations against Zhang for threatening violence related to property disputes and against Xuan for incidents involving vandalism, weapon brandishing, and aggressive behavior, including throwing rocks and using a Taser on a dog. Several of these allegations resulted in police investigations, but prosecutors declined to file charges, citing insufficient evidence.
Child protective services record at least seven referrals related to the couple between 2019 and 2025. However, authorities only removed the children from their custody last year, following reports that a two-month-old infant suffered a brain bleed due to abuse. Prosecutors allege nannies, including one who has fled the country, assaulted the children under Xuan and Zhang’s supervision. Audio-visual evidence presented in court reportedly shows repeated, severe physical abuse of multiple children over a ten-day period.
Civil litigation has also been filed by several surrogate mothers from various states, accusing Xuan and Zhang of fraud and coercion. The plaintiffs claim the couple concealed their extensive surrogacy operation and prior allegations from them, and in some cases, presented their own chosen attorney to the surrogate mothers. Some women resisted returning children amid abuse concerns, leading to contentious legal disputes and accusations of intimidation.
The FBI is reportedly investigating the surrogacy operation for potential money laundering and surrogacy fraud, with federal agents searching the Arcadia property and interviewing witnesses. Xuan and Zhang’s attorneys deny wrongdoing, attributing some allegations to anti-Chinese bias and public scrutiny due to the large size of their family.
The case has raised broader questions about the regulation of surrogacy in the United States, an industry currently with limited oversight. Experts warn that this case highlights systemic vulnerabilities when intended parents control all aspects of the process without independent checks. Authorities continue to investigate as legal proceedings move forward.