Arcadia Couple Accused of Abusing Surrogate-Born Children Ran Their Own Surrogacy Firm, Attorneys Say

Since Arcadia police first responded in May 2025 to a 2-month-old with a traumatic head injury, the case against Guojun Xuan, 66, and Silvia Zhang, 39, has grown to involve 21 children and a set of felony charges filed Oct. 6, 2026. It now raises two questions: how the couple collected so many surrogate-born children, and why it took so long for anyone to step in.

A 2019 case, then a firm of their own

A Los Angeles Times review of court records, police files and interviews found that Zhang was accused of misdemeanor child abuse in 2019. She allegedly left her then-8-year-old daughter in a hot car for hours.

A Sheriff's Department spokesperson told the paper the child was not seriously injured. Court records show Zhang entered a diversionary plea agreement with L.A. County prosecutors and completed its terms in 2023, after which the case was dismissed. All records in the case are sealed.

About two years after that incident, the couple began building a family of more than 20 surrogate children. Prosecutors say they set up their own surrogacy agency, operated from their home, and used it to hire surrogates across the country. The Times identifies the firm as Mark Surrogacy Investments.

Two civil attorneys told the Times that setup let the couple sidestep what few safeguards exist. U.S. surrogacy is largely unregulated, but independent firms typically vet prospective parents. Calabasas surrogacy lawyer Maya Shulman said that by launching their own firm, the couple made sure no one looked into their backgrounds.

"No respectable agency and no respectable attorney would have represented her," Shulman said.

What prosecutors allege

Los Angeles County District Attorney Nathan Hochman called the case "unprecedented" and the mansion a "house of horrors." Prosecutors say the couple set up three rooms they called "learning centers," where children, most between ages 1 and 3, sat at desks for hours under nannies' supervision.

The couple allegedly watched through 32 motion-activated cameras and microphones as nannies beat the children daily. Hochman said the nannies were told not to leave visible marks. He also said the couple coached the children to deny being beaten before police arrived in May 2025.

The complaint alleges that Xuan once walked into a learning center, saw a nanny striking a child, asked her to hit harder, delivered open-handed blows to the child's head and lifted the child with one arm.

Both defendants are charged with conspiracy to commit child abuse. Xuan also faces one count of felony child abuse, one count of accessory after the fact and five counts of dissuading a witness. Zhang faces one count of accessory after the fact and four counts of dissuading a witness. Hochman said one defendant faces more than 17 years in prison if convicted.

Both pleaded not guilty. Each is held on $20 million bail. Prosecutors had sought $100 million, citing flight risk. A bail review hearing was set for Monday, Oct. 12.

The infant and the nanny

The case began when Zhang brought the 2-month-old to Children's Hospital Los Angeles with a brain bleed. Prosecutors allege the couple waited two days, until the baby had seizures, and claimed he fell out of bed.

A search warrant obtained by ABC7 describes camera footage of nanny Chunmei Li placing the infant out of view, a thud, then the crying stopping. Authorities say Li was charged with felony child abuse. A $105,000 arrest warrant is outstanding, and Arcadia police Sgt. Mario Castro said her whereabouts are unknown.

Warning signs

Police responded to at least six 911 calls at the home since January 2022, according to documents obtained through a records request. Several calls were redacted, so the number could be higher. The couple moved into the mansion in April 2021, Sheriff Robert Luna said.

The Times review also found the couple was repeatedly the subject of attention from local authorities and child services investigators over the past few years, in civil lawsuits and restraining order applications as well as police records. A neighbor, Chuck Trujill, told ABC7 he could hear screaming from the property.

Prosecutors also say the couple lied to surrogates about their reasons for wanting children. One surrogate was told Zhang had trouble conceiving, Hochman said. Police believe Zhang gave birth to only one or two of the children.

The defense

Xuan's attorney, Mitchell Krems, says his client is innocent. He has blamed the alleged abuse on the nannies and said Xuan "is being targeted for exercising his constitutional right to have a large family." He has also suggested the couple is being heavily scrutinized because of anti-Chinese sentiment in the U.S.

The charges are allegations. The 2019 case was dismissed after the diversion terms were completed, and no court has ruled on any count in the current case.

The children

Fifteen children were removed from the home last year, and six others living elsewhere were located. All 21 are in the custody of the L.A. County Department of Children and Family Services, according to ABC7's sources. The district attorney's presentation did not address where the children will live long term.

Some surrogates have said they do not know what became of the babies they delivered. Vanity McGoveran, who gave birth to a girl in March 2025, said of the child: "Not if it's bad news, then I don't want to know."

The FBI said it was executing a federal search warrant at the residence on Oct. 6. No federal charges have been announced. Li has not been located.