Surrogacy Controversy: Guojun Xuan and Silvia Zhang’s Troubling Case

Accusations and Background Checks in Surrogacy

In 2019, Guojun Xuan and Silvia Zhang began amassing a family through surrogacy. However, Zhang had a prior child abuse allegation from leaving her daughter in a hot car. This incident, detailed in a recent motion by prosecutors, might have impacted their ability to pursue surrogacy if proper background checks were conducted. According to civil attorneys, Xuan and Zhang evaded checks by creating their own firm, Mark Surrogacy Investments.

The surrogacy industry lacks stringent regulations, allowing prospective parents to acquire children with minimal oversight. Despite this, independent firms generally conduct due diligence on clients and surrogates. However, by managing their own surrogacy firm, Xuan and Zhang ensured their backgrounds remained unchecked.

Legal Troubles and Allegations of Abuse

Recently, Xuan and Zhang faced court over charges linked to operating a “house of horrors” in Arcadia. The mansion allegedly subjected surrogate children to beatings and punishments by nannies. Both were charged with conspiracy to commit child abuse and witness intimidation, with Xuan also accused of physical abuse. They pleaded not guilty but remain jailed on a $20 million bail.

Records from the L.A. County Department of Children and Family Services show seven referrals involving them between 2019 and 2025. The department acted last year after an infant suffered a brain bleed, prompting removal of children from their custody.

Emerging Investigations and Civil Lawsuits

The case has prompted scrutiny of how Xuan and Zhang accumulated surrogate children. Authorities and child services repeatedly reviewed allegations against them. In potentially fraudulent and violent incidents, Zhang allegedly threatened a tenant with “gangsters,” and Xuan faced accusations of vandalism and assault.

The FBI is now investigating the couple, focusing on money laundering and surrogacy fraud. A civil lawsuit filed by surrogates accuses them of manipulating professional safeguards to obscure their actions. The lawsuit alleges fraudulent representation and coercion in surrogacy arrangements.

Impact on the Surrogacy Industry

The civil suit highlights the lack of oversight in the surrogacy process managed by Xuan and Zhang. It illustrates how their firm undermined professional safeguards intended to ensure proper contracts between surrogates and parents. Surrogates alleged continuous misinformation and coercion during custody decisions.

Incidents related to surrogate arrangements, like Zhang’s hospital visit without essentials for a newborn, demonstrate careless oversight. Further revelations of threats and legal actions against surrogates refusing custody transfers emphasize the issue.

An independent agency’s involvement might have uncovered their troubling background, preventing surrogates from engaging in such arrangements, according to attorney Jamie Majerus, representing the surrogate mothers.