Key Point Summary – Surrogacy scandal California

• FBI rescued 21 children from an Arcadia mansion in a surrogacy raid
• Surrogate Kayla Elliot said her baby was picked up with no car seat
• Doctors discovered trauma in a 2-month-old, triggering the probe
• At least six surrogates confirmed births for the same couple
• Agencies involved have since closed, raising trafficking concerns
• Surrogates reported cash payments and fake “mothers”
• The FBI now investigates possible international trafficking

The First Red Flag Came Through Facebook

Texas mom Kayla Elliot never expected a surrogacy offer to turn into a criminal case. When a message from Mark Surrogacy Investment LLC popped into her inbox, she felt unsure—but curious. “I really enjoy being pregnant,” she explained in a recent interview. She wanted to help a couple start a family.

At the time, she had no idea this pregnancy would connect her to a mansion full of children and a federal investigation.

FBI Bust Uncovers Baby Hotel in California

Authorities raided a 10,000-square-foot home in Arcadia, California, on July 3. Inside, they found 21 children, most under age 3, living in what police described as a luxury “baby hotel.”

Investigators began their probe after a 2-month-old baby arrived at a local hospital with a traumatic brain injury. Doctors realized the injury had happened two days earlier. They called the police.

Detectives pulled surveillance video from inside the mansion. Footage showed a nanny shaking the baby violently until the child lost consciousness. Officers say they also witnessed disturbing scenes involving at least six nannies mistreating other children.

Surrogates Reveal a Pattern

Elliot described how a stranger met her during her embryo transfer in California. A man introduced himself as the father, but the intended mother never showed up—claiming she had a stomach bug. Elliot only learned later that several other surrogates heard the same excuse.

She gave birth in March. Days later, a young woman arrived to collect the baby. The woman brought no car seat and showed little emotion. Elliot’s family drove her to the airport.

Before leaving, the woman handed $200 in cash to Elliot and her children.

“I didn’t feel like I was giving this baby to a parent,” Elliot said. “It felt like a handoff.”

A Fertility Free-For-All

Investigators linked the mansion to two companies: Mark Surrogacy Investment and Future Spring Surrogacy. Both operated out of the same Arcadia address. State records now list them as inactive.

Kallie Fell, director of the Center for Bioethics and Culture Network, believes the mansion operated as part of a black-market surrogacy network.

“This smells like trafficking,” she said. “The fertility industry has no oversight. Anyone can start an agency, and no one’s watching.”

Fell spoke to multiple surrogates who had similar experiences. Most never met the mother. Most received vague instructions. And many got lower-end payments than industry norms.

Who Are Xuan and Zhang?

Police arrested Guojun Xuan, 65, and Silvia Zhang, 38, after the hospital reported the injured baby. The pair claimed legal guardianship over many of the rescued children. Zhang’s name appeared on numerous birth certificates.

Officials say the couple wanted to build a large family. Surrogacy is illegal in China, so they turned to U.S. agencies to find willing women.

Xuan and Zhang have since walked free. Their attorney denied any wrongdoing and claimed the situation was misunderstood.

But the visuals remain troubling: a multimillion-dollar mansion, surveillance cameras, paid nannies, and 21 young children born via strangers.

Surrogates Still Carry Their Babies

At least two surrogates in other states are still pregnant with babies for the same couple. One lives in Pennsylvania. The other in Virginia. Both asked for privacy.

In Florida, a woman identified only as Perla said she carried a baby for the pair, but the child was stillborn. “It hurt the most to feel like the baby was abandoned—and so was I,” she said.

Elliot Fights to Keep Her Baby

After the handoff, Elliot started a GoFundMe campaign. She wants to secure legal custody of the baby girl she delivered. Right now, the child lives in foster care with 20 other rescued children.

“I’m ready to give her the love and safety she needs,” Elliot wrote. “But the process is complicated and expensive.”

The campaign has raised just over $7,000.

The Case Grows Bigger

Arcadia Police Lt. Kollin Cieadlo said his department is working closely with the FBI. Detectives are tracing where each child was born and identifying every surrogate involved. The investigation now stretches across multiple states—and possibly beyond U.S. borders.

“These kids weren’t all born in California,” Cieadlo confirmed. “This could go international.”

So far, six women have come forward. Authorities expect more.

A Dark Glimpse Into Unregulated Surrogacy

The mansion in Arcadia was more than just a home. Neighbors described it as a mini-hotel, complete with front desk staff and rooms designed for rotation. It functioned like a nursery factory.

Fell says the system failed these babies—and the women who bore them.

“The little one deserves a real home,” Elliot said, holding back tears. “They all do.”

And as the case unfolds, the world watches the fallout from one of America’s most disturbing surrogacy scandals.