SHOCKING Surrogacy Scheme — 26 Kids Seized

A Chinese-born California couple exploited America’s surrogacy industry to produce 26 children across multiple states, all while operating a mansion-turned-kindergarten where hired nannies subjected innocent kids to documented physical abuse—yet authorities still haven’t filed criminal charges.

Story Highlights

  • Arcadia police seized 21 children in July 2025 after a 2-month-old suffered severe head and neck trauma consistent with shaking or dropping
  • Surveillance footage revealed nannies spanking and hitting children in a home that neighbors mistook for a kindergarten facility
  • The couple produced at least five more babies via surrogacy after the raid, all immediately removed by authorities in Virginia, Pennsylvania, and Georgia
  • Guojun Xuan and Silvia Zhang operated surrogacy agencies from their properties, deceiving American surrogates about their massive child-production operation
  • Despite overwhelming evidence and 26 children in state custody, no criminal charges have been filed against the couple

Mass Surrogacy Operation Exposed After Infant Hospitalization

Guojun Xuan, 66, and his partner Silvia Zhang built an unprecedented child-production operation using American surrogates recruited through Facebook. The scheme unraveled in May 2025 when a 2-month-old infant arrived at a hospital with injuries doctors described as consistent with violent shaking, dropping, or a car accident. Zhang claimed a nanny accidentally dropped the child from a bed, but medical evidence told a different story. This triggered a police investigation that revealed a disturbing reality: the Arcadia mansion housed 21 children, most born via surrogate mothers who were systematically deceived about the couple’s intentions.

Nanny-Run Facility Operated Under Parents’ Watch

The July 2025 raid uncovered a home transformed into what neighbors described as a kindergarten, staffed by at least six nannies overseeing children ranging from 2 months to 13 years old. Surveillance footage obtained by investigators documented systematic abuse—children were spanked, hit, and in at least one case forced to perform squats as punishment. Police Captain Kollin Cieadlo stated the couple was “well aware” of these conditions. One nanny, Chunmei Li, remains sought for questioning. The couple operated Mark Surrogacy and Future Spring Surrogacy, both registered to their properties, to recruit American women who believed they were helping a childless or struggling family.

Defiant Couple Continued Baby Production Across State Lines

Rather than cooperating with authorities, Xuan and Zhang doubled down on their operation. In the six months following the raid, at least five more surrogate-born babies arrived in Virginia, Pennsylvania, and Georgia—all genetically linked to Xuan and immediately seized by state authorities. The couple is now fighting custody battles across four states while simultaneously suing the very surrogates they hired. Their attorneys dismiss abuse allegations as “sensationalized” and claim they expect to win full custody. This brazen defiance exposes a critical gap in America’s interstate child welfare system, where wealthy individuals can exploit reproductive technology without meaningful oversight or immediate criminal consequences.

Criminal Ties and Immigration Fraud Background Emerge

Investigations into Xuan’s real estate holdings revealed troubling connections beyond the surrogacy scandal. In September 2025, El Monte authorities filed civil abatement claims against properties owned by Xuan, alleging they hosted illegal gambling machines and psilocybin mushrooms operated by associate Haoren “Dragon” Ma, previously convicted of immigration fraud in 2014. Zhang’s own immigration history raised red flags—she arrived in 2016 and married elderly Henry Tang in 2014, divorcing him in 2021 amid allegations of elder fraud related to a home sale. By 2021, the couple was visiting HRC Fertility for sperm collection from Xuan, using anonymous egg donors to fuel their mass baby production. This pattern reveals individuals willing to manipulate systems—immigration, surrogacy, real estate—with little regard for American laws or vulnerable parties.

The fact that all 26 children remain in state custody while no criminal charges have been filed demonstrates a troubling failure of our justice system. These vulnerable children suffered documented abuse in an operation that exploited American surrogates, yet the perpetrators walk free, lawyered up, and fighting for custody. This case demands accountability and immediate regulatory reform to prevent wealthy foreign nationals from weaponizing America’s surrogacy industry. Our laws should protect children and honest American citizens participating in surrogacy, not enable those who view human life as a commodity to be mass-produced without consequence.

Sources:

California couple had 21 children via surrogacy taken into custody amid child abuse probe – CBS News

SoCal man at center of surrogacy scandal now connected to properties linked to alleged gambling, drugs – ABC7