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Theresa Erickson To Be Sentenced For Baby Trafficking Ring

Theresa Erickson

First Posted: 02/24/2012 12:06 pm Updated: 02/24/2012 12:06 pm

By: JULIE WATSON (The Associated Press)

SAN DIEGO — Theresa Erickson's reputation as a leading reproductive law specialist eased the concerns of surrogate mothers and intended parents.

But prosecutors say being a trusted source also allowed her to lure them into unwittingly helping her build a baby manufacturing business spanning two continents that netted millions.

The 44-year-old attorney is expected to be sentenced Friday at a hearing in federal court in San Diego. She faces up to five years in prison.

Erickson, who authored books and spoke on TV about fertility issues, used California's thriving surrogacy business to find clients that she could convince to pay up to $150,000 for each baby, federal prosecutors say. The parents believed they were adopting legally by entering into an arrangement with a surrogate mother before the pregnancy.

In fact, Erickson working with a surrogate, Carla Chambers, and another respected Maryland attorney, Hilary Neiman, lined up parents for babies they had already created by sending U.S. surrogates to Ukraine to be implanted with sperm and embryos from anonymous donors, prosecutors say.

"These were criminals that were creating human life for sale," said surrogacy attorney Andrew Vorzimer, who represented the surrogates that helped blow the whistle on the scam. "Many people consider this to be a surrogacy arrangement gone awry. But this was not surrogacy in any shape or form."

Vorzimer said no one knows how many babies in total were created, and important genetic information for the infants may have been lost forever. The surrogates were also unaware of the scam, federal prosecutors say.

"They attempted to create the most marketable baby available, which was blond hair, blue-eyed baby, while simultaneously pulling on the heart strings of intended parents," Vorzimer said. "It defies description the immorality that was involved in this ongoing operation that went on for years."

Erickson has pleaded guilty to fraud and admitted to filing false applications for the surrogates to California's state insurance program to subsidize the medical costs of the deliveries of the babies. Chambers pleaded guilty to conspiracy to engage in monetary transactions derived from unlawful activity and also will be sentenced Friday. She faces up to five years as well. Neither woman nor their attorneys could be reached for comment.

Neiman was sentenced in December to one year in custody that included five months in prison and the rest under home confinement.

The case has prompted greater scrutiny by judges in California, the industry's hub because of its progressive laws regulating the industry. Other states ban surrogacy outright.

Heather Albaugh, a surrogate from the Dallas area, said she was among those who were duped by the trio.

Albaugh said she was contacted by Chambers after posting an ad on a surrogacy website. She said she was new to the business and nervous about agreeing to be sent to Ukraine for an embryo transfer but then Chambers told her the agency was represented by Erickson and Neiman.

"These two attorneys were huge, they were on the up-and-up and considered to be household names in the surrogacy industry, so once she said that I let down my guard," Albaugh said.

Albaugh returned from Ukraine and was in her 18th week of pregnancy when she started calling other attorneys, alarmed that there still were no parents set up to adopt the child she was carrying. Chambers had told her twice that the clients they lined up had backed out at the last minute.

Albaugh discovered from one of the outside attorneys she called that Erickson and the others were under investigation by the FBI.

"My jaw hit the ground," she said. "But I immediately kicked into what do I needed to do. I immediately got angry."

Albaugh called the FBI agent and helped with the investigation. She will be asking the judge Friday to require Erickson and Chambers pay her compensation.

She was promised $38,000 for carrying the child but received nothing, and feels she can never work again as a surrogate because her name has been tied to the scandal, although she was one of the victims, Albaugh said.

She gave birth in 2010 and a couple she had befriended has since legally adopted her.

Albaugh remains close to the family, visiting them regularly. She said that is the bright spot in all this, but she fears the day the girl asks questions about her birth.

"If she ever asks me any questions, I'll answer," Albaugh said. "But I'm sure there will be a time when she'll feel angry."

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By: JULIE WATSON (The Associated Press) SAN DIEGO — Theresa Erickson's reputation as a leading reproductive law specialist eased the concerns of surrogate mothers and intended parents. But pro...
By: JULIE WATSON (The Associated Press) SAN DIEGO — Theresa Erickson's reputation as a leading reproductive law specialist eased the concerns of surrogate mothers and intended parents. But pro...
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02:38 PM on 02/27/2012
Amazing how many attorneys think the law doesn't apply to them. What are they teaching in law school??
HUFFPOST SUPER USER
FWJames123
Well behaved women rarely make history
12:22 AM on 02/27/2012
Typical huff puff...so what really happened here was this...

The woman had the surrogates impregnated PRIOR to having intended parents involved in the contract. She claimed that the initial intended parents backed out and then sold the baby to the people she was representing. This was all filed in the courts as a surragacy contract (which has a very specific set of rules to follow). But in reality, because the surrogates were already pregnant when contracts were signed, they were legally adoptions verses a surrogate/parent contract. The rules for adoptions are much tighter and the fee level she accepted as well as the surrogate fees paid were all illegal.

And i have to say....we would have fallen for this likely in our search for a child. Adopting in America is a total pain in the arse and oddly enough high income is a strike against you as is age over 40 or having another child in the house. It takes a rediculous amount of time...the process is a joke, and then you compound that with the horrific stories you hear constantly about abuse in foster homes....it boggles the mind, which is why surrogacy is so attractive.
09:43 PM on 02/26/2012
What are they going to do with the kids out there? Leave them with the "parents" who bought their dream baby specs and all?
02:56 PM on 02/27/2012
The folks who adopted the genetically engineered children didn't do anything wrong - watch the video. They didn't pick these kids out of a baby catalog or something, they were duped into thinking they were adopting legitimately.
04:28 PM on 02/26/2012
Amazing things people think of to make money. How sad that life becomes such a complex, twisted set of schemes.
09:03 AM on 02/26/2012
You can make big money if you're willing to sell your integrity!
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HUFFPOST SUPER USER
Kathy Lebron
08:13 PM on 02/25/2012
People will do anything for the "almighty" dollar. Anything.
HUFFPOST SUPER USER
gjackson
12:45 PM on 02/25/2012
they all want perfect
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HUFFPOST SUPER USER
rockysparks
there's no law against being annoying.
09:57 AM on 02/25/2012
This woman was a baby retailer. Is it less expensive if you buy the baby wholesale from the original owner?
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HUFFPOST SUPER USER
Jeffin90019
Your religion is your lifestyle choice. Not mine.
02:13 AM on 02/25/2012
Surrogacy has allowed millions of people to become parents. But it's a troubling industry. I can rent a woman's womb for procreation, but I can't pay a woman to come to my room for recreation. That's a crime.

Live human babies are being produced with the intention of transferring the product to new owners at the end of the manufacturing cycle. There's compensation involved for the manufacturing plant's time, expenses and warehouse space. The opportunities for abuse were inevitable.

Erickson was manufacturing a special product for upscale couples that could afford up to $150,000 for the upscale baby -- brand new, American-born, blond, blue eyed, white as a blizzard. That takes a special kind of evil.
HUFFPOST SUPER USER
wesdfs
a guy with different point of veiw
02:04 AM on 02/25/2012
it should be five years for each baby they sold at least------sombody got paid off
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12:56 AM on 02/25/2012
These two pigs get five years???? Why? They kicking back or what?
That is a slap on the wrist and smells pretty bad from where I am sitting.
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HUFFPOST SUPER USER
sadwitness
Haters have no effect on me. I'm idiot proof.
03:08 AM on 02/25/2012
They have money and justice is for sale
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06:47 PM on 02/25/2012
Absolutely...F & F

They use to think no one was smart enough to know.
Now...they don't even care who knows.
11:11 PM on 02/24/2012
I don't really see much of a problem with what she did.I'm trying to,but am not seeing it.Seems to me they had a very profitable angle ,with just a bit of lying.American business as usual
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HUFFPOST SUPER USER
sadwitness
Haters have no effect on me. I'm idiot proof.
03:09 AM on 02/25/2012
unconscionable...wow
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bridgeman
Jesus was a Jazz fan
09:33 PM on 02/24/2012
Imagine if she was trafficked as a punishment...horrible thought, but she participated in an even sicker proposition.
08:11 PM on 02/24/2012
I'm not sure that Albaugh is not guilty to same degree. She was promised $38,000 to carry a baby...then she knew something was shady.
10:49 PM on 02/24/2012
The compensation for a surrogate is to cover all expenses throughout the pregnancy, as well as additional money for the use of the surrogate's body. The amount goes up with each successful surrogacy, because the surrogate is more familiar with the process each time, and is likely to be better with separation at the end of the pregnancy.

Further, not all surrogate pregnancies carry the genetic material of the prospective parents. Most surrogates will not offer their own ovum, but some do. Others receive pre-selected fertilized cells from the actual parents, and still others carry fetuses created through cell donation, with no genetic material from the parents or the surrogate. It's easy to see how she could have been mislead on that front as well.

There's nothing shady about the practice. She accepted a seemingly legit deal. The fact that there never WAS an adoptive couple and that the baby was produced for sale, rather than for a family that had actually contracted the surrogate is the problem, and because she was working through the lawyer, she had no way of knowing she was being duped.

Ms. Albaugh did nothing wrong, as isn't guilty of anything.

Here's a few links to a basic info site and a couple agency sites. Education FTW.

http://www.surrogacy.com/
http://www.circlesurrogacy.com/index.php/become-a-surrogate/faqs
http://www.thesurrogacysource.com/sg_compensation.htm
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HUFFPOST SUPER USER
Jeffin90019
Your religion is your lifestyle choice. Not mine.
02:00 AM on 02/25/2012
Thank you for that, CR. Logic and facts carry the day over proud, loud ignorance.
08:07 PM on 02/24/2012
Five years in prison is a slap on the wrist for these two. They need to serve a lot longer, and lose their license to practice law. There is no telling what kind of medical problems these babies might have. I wonder if they have any idea who the sperm donors are? I don't know why I'm surprised at their actions, people will sell their souls for anything. I hope those millions keep them warm in prison, they're going to need them.
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HUFFPOST SUPER USER
sadwitness
Haters have no effect on me. I'm idiot proof.
03:10 AM on 02/25/2012
Prison??? hardly
10:38 AM on 02/25/2012
I'd vote for death, but they haven't killed anyone. Unless some of these babies are born with potential deadly health problems. When they finally go to trial, if the prosecutor doesn't plea deal, I hope they receive the harshest punishment law can give. That would be locked up 23 hours per day in solitary confinement. Let their egos be their companions. They can dream about their millions, let it keep them warm at night. They bought it, now let them enjoy it.