Guojun Xuan, 66, and his wife Silvia Zhang were taken into custody at their sprawling Arcadia residence on 28 April 2026 after a hospital reported a 2‑month‑old infant suffered a traumatic head injury from a nanny. Prosecutors said the couple used the incident as a pretext to launch a raid that uncovered a network of 21 children, many of whom were raised by surrogate mothers the pair recruited across the United States.
The couple operated a home‑based agency called Mark Surrogacy, misleading women by claiming they had one child or were infertile, while secretly arranging for them to carry the children. A total of 200 personal bank accounts and 70 corporate accounts were traced to the Xuan‑Zhang family, with annual transfers totaling ₹250 million. A $70 million balance in one account and assets worth nearly $10 million, including antique sculptures and specialty alcohol, were seized during the investigation.
Surveillance footage showed the pair watching nannies beat the children, with Xuan instructing a nanny to strike a child harder in one clip and joining in another. Prosecutors alleged that the nannies were told not to leave visible marks and that children were forced to deny abuse when police arrived in May 2025.
The pair pleaded not guilty in Pasadena, denying all allegations with a Mandarin interpreter. Judge Kerry White set bail at $20 million each, imposed home detention, and issued a protective order preventing the children from visiting the parents. Attorneys Mitchel Krems argued the bail was absurd and highlighted Zhang's leukemia and recent bone‑marrow transplant.
Fifteen children were removed from the mansion last year after an abuse allegation, and six others were located elsewhere. The youngest was 2 months old, the oldest 13; most were between 1 and 3 years old. The case will now be heard in the Los Angeles County Superior Court, where prosecutors seek convictions on multiple child‑abuse and conspiracy counts.