realestate

California Couple Embroiled in Surrogacy Dispute Faces Additional Lawsuits

Employees allege denied breaks, late pay in pending Los Angeles County lawsuit.

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Southern California couple, Silvia Zhang and Guojun Xuan, are at the center of a child abuse investigation involving 21 young children, some born to surrogate mothers. Former employees have filed two lawsuits alleging unethical and illegal business practices while working for their real estate company, Yudao Investments. Tina Powers, a former assistant, described the couple as "terrible people" who engaged in shady business dealings. She claimed that Zhang and Xuan would yell at each other and mistreat employees, denying them proper breaks, overtime pay, and sick leave.

    Powers was one of six former employees to file a class-action lawsuit against Yudao Investments in December 2023. The suit alleges unfair treatment, including failure to pay overtime wages and deny timely rest breaks. Zhang and Xuan have not responded to multiple requests for comment. An attorney representing them could not be reached.

    Police removed 15 children from the couple's Los Angeles suburban mansion after a 2-month-old baby was hospitalized with head injuries. Video evidence shows some younger children were subjected to physical and emotional abuse by nannies, and authorities believe Zhang and Xuan knew about it but did nothing. An arrest warrant has been issued for the nanny who allegedly violently shook and struck the infant.

    Zhang, 38, and Xuan, 65, were arrested in May on suspicion of felony child endangerment and neglect but were released pending further investigation. Six other children belonging to the couple are in the care of family and friends. Powers said she never witnessed abuse towards the children but recalled seeing four or five kids at the mansion, including one who was allegedly a surrogate's biological child.

    The lawsuits also describe poor working conditions, with employees often working over eight hours without overtime pay and being denied proper breaks. Powers claimed that Zhang and Xuan would fire workers whenever they felt like it. The couple's real estate business moved out of the mansion in July 2022, but Powers was terminated in September after speaking up for herself and her colleagues.

    Another former employee, Alejandro Diaz, sued Yudao Investments and Xuan in July 2022, alleging wrongful termination, battery, assault, and failure to pay overtime. He claimed that Xuan threw rocks at him, brandished an assault rifle, and fired him without proper pay. The lawsuit was settled earlier this year with a confidentiality clause.

    A surrogate mother, Kayla Elliott, said she thought she was helping a couple struggling to conceive but was unaware of their large family. Her child is now in foster care, and she is fighting for custody. The Arcadia Police Department is working with the FBI and the Los Angeles County Department of Children and Family Services on the investigation.

California couple involved in surrogacy dispute faces multiple lawsuits and controversy.