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CTV News
6 days ago
- Business
- CTV News
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. Kim and Martijn Appel Kim and Martijn Appel 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. Tunde 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. 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. 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. 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 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.
Global News
7 days ago
- Business
- Global News
Alberta surrogacy agency suddenly closes, crushing couples' dreams of parenthood
A central Alberta surrogacy agency appears to have suddenly closed, leaving families hoping to become parents out tens of thousands of dollars and forced to find other options to grow their families. The company is known as JA Surrogacy on social media and to the dozens of 'intending parents' who gave it their money. Among them were Martyn and Kim Appel, who, after they 'went down probably every avenue' to become parents, decided surrogacy was their best option. The baby would be biologically theirs and a surrogate would carry it to term. 'We have … multiple clinics trying to find some answers, many IVF attempts, even looking into adoption, but it was never a guarantee, so surrogacy became the one thing we decided to do to have a baby of our own,' said Kim. Story continues below advertisement They paid the company $20,000. last October to help arrange the surrogacy. View image in full screen Kim and Martyn Appel tell Global News they paid JA Surrogacy $20,000 last October to help them have a child through a surrogate parent. Global News JA Surrogacy is owned by a man identified to Global News by some of his clients as Phil Allen. 'We had a good feeling with them. The person that we met with was very, like, sincere and empathetic to our story. It's been a long time, so she was very much wanting to help. She had a very good and quick match for us which got us to want to sign with them,' said Kim. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy The company paid all the fees up front, but the arrangement eventually fell through because of some issues with the surrogate parent, and the couple was back to square one with the company trying to help find them a new surrogate. 'Our money, as far as I know, is only in JA's account and not in a trust account because they consider themselves consultation fees. In Canada, you cannot be paid as an agency to match people, so they do the background work to try create different scenarios to get you to match with somebody and to support the process for the surrogate along the way,' added Kim. Story continues below advertisement After checking in with the agency recently, Kim said she wasn't getting any answers — so she contacted a couple of staff members she knew and was shocked when she was told the company had ceased operations. 'I took to social media and I went into the community and was like, what is going on — has anyone heard anything? I found out through social media that they ceased operations and it was the decision of the owner only and that the staff were terminated on the spot and essentially no JA agency existed anymore.' They're still waiting for any direct communication from Phil Allen, the man behind the company. However, another European client shared a letter, from the owner's email, that apologizes for the abrupt closure of what it said was a numbered company. 'It is with deep regret that we inform you that 2107677 Alberta Ltd, o/a JA Surrogacy Consulting will be ceasing operations effective immediately. This decision comes after a thorough review of the company's 2025 fiscal year-end financials, which revealed the business is no longer financially viable,' the email reads in part. 'The company is currently over $150,000 in debt and has no remaining funds to keep operating.' View image in full screen A recent email that was sent to a couple in Europe that had hired JA Surrogacy to help them find a surrogate parent, said the company had ceased operations for financial reasons. Provided to Global News The email recommends that clients contact their legal counsel and/or fertility clinics to discuss their next steps. Story continues below advertisement 'There is not only us in this situation, there's multiple clients and intended parents that hoped and dreamed that this would be something one day that they could have happen,' said Kim, struggling with her emotions. 'And the actions of one person have potentially ruined that for a lot of us.' Global News tried to contact JA Surrogacy by telephone, but got a message saying the agency's number has been disconnected. We tried to contact the owner through the company's email address, but got no response. We even knocked on an Okotoks home listed as the company's address, but the person who answered the door said Allen doesn't live there. 'At this point, we just want out money back — we're even willing to negotiate a fair settlement for what we have paid and signed in our contract,' said Kim. 'But it's also an emotional impact as well that I think is going to take a lot more time. With people wanting a family, the older we get, the less the dream becomes reality.'
