Alberta surrogacy agency’s sudden closure devastates hopeful parents around the world

Hopeful parents from around the world say the sudden closure of an Alberta surrogacy agency has left them at a financial loss and emotionally devastated.

The sudden closure of JA Surrogacy Canada has left multiple intended parents emotionally and financially at a loss while also pointing out the pitfalls of Canada’s surrogacy system.

“I think fertility is such an emotionally, physically and financially draining journey,” said Kim Appel from central Alberta.

“It makes us feel stuck because we lost a financial aspect, and we lost a little bit of our dreams that could have come true.”

She and her husband, Martijn Appel, say they have been trying for 12 years to have a baby.

They signed up with Alberta-based JA Surrogacy Canada and say they spent more than $20,000 in hopes a surrogate would carry their biological child.

On Friday, they received an email that the agency would be closing and all the employees terminated.

One Hungarian woman living in Ireland tells CTV News she and her husband also spent about $19,000 so the agency could cover the surrogate’s expenses.

Now they have to start the process all over.

“I feel completely devastated. We are trying to focus on the future instead of the past, but it’s very hard,” said the woman, who only wanted to be referred to as Tunde.

JA Surrogacy was founded by Jennifer Allen; she died in 2023.

Her husband, Phil Allen, inherited the company but sent CTV News a statement, which reads in part:

“Unfortunately, recent financial disclosures have brought to light a devastating reality—the company is insolvent, with over $150,000 in liabilities and no funds remaining in its bank accounts. As shareholders, we want to be absolutely clear—we have never taken any compensation, dividends or personal withdrawals from the company.”

It also reads:

“We are fully committed to transparency and accountability. In light of the situation, we are in the process of engaging a qualified forensic accountant to conduct a comprehensive review of the company’s finances. Our goal is to trace all funds and provide clear answers for every intended parent, surrogate and service provider affected. This is not just a financial review—it is a moral obligation, and we will pursue it with the seriousness it deserves.”

Allen has also reached out to RCMP, and CTV News has not been informed if any charges have been laid.

The company’s now former CEO, Michelle Avery, sent CTV News a statement, which reads in part:

“Mr. Allen made the unilateral decision to close the doors without providing notice or severance to employees, and without allowing proper time for clients to be notified/allowed to direct what occurred with their funds.”

One Calgary-based lawyer who helps clients with all aspects related to fertility says it’s likely these clients are left without recourse to get their money back.

“The key thing is to make sure that the money that is (held) in trust, which is there for the benefit of the surrogate and managing her expenses through the process—that (money held in trust) is protected,” said Ellen Embury with Embury and West.

Surrogacy pitfalls

Same-sex couples, single people or couples experiencing illness or infertility are referred to as “intended parents” when starting the process of connecting with a surrogate who will carry a pregnancy on their behalf.

Surrogates cannot be paid in Canada under law.

Expenses like hotel stays and transportation can be covered, and agencies vary in their processes to administer a surrogate’s expenses.

Agencies are not regulated, and surrogates cannot be compelled to carry a pregnancy, as it’s not a service or commodity, said Embury.

Fertility advocates say the agency’s closure highlights the pitfalls of surrogacy arrangements in Canada.

“Surrogacy shouldn’t be full of crazy stories. It shouldn’t be full of scary times. We need to support (intended parents) and surrogates,” said Sara Cohen, past president of Fertility Matters Canada.

“Even regulation, in my opinion, is not going to (stop) that some companies go bankrupt and it is tragic and it is awful when it is so hard for this already incredibly vulnerable community to have to experience that.”

Cohen is also the founder of Fertility Law Canada and also represents clients across the fertility spectrum.

She and Embury agree legalizing compensation for surrogates would provide a basis for regulations to require agencies to protect funds held in a trust.

Fertility treatments and surrogacy are governed by the Assisted Human Reproduction Act.