Arcadia surrogacy scandal: Guojon Xuan and Sylvia Zhang arrested for child abuse

ARCADIA, Calif. (KABC) — Los Angeles County sheriff’s deputies searched an Arcadia home Tuesday morning and arrested a couple accused in a surrogacy scandal involving 21 child victims, authorities said.

Silvia Zhang and Gunjun Xuan, the man and woman who sheltered the children and are at the center of the case, were arrested in a joint operation involving the Sheriff’s Department and the FBI.

Prosecutors say the couple misled the surrogates they paid to carry their children through their own surrogacy company. A criminal complaint lists 10 counts against the couple and 55 clear acts of conspiracy to commit child abuse.

Xuan’s attorney, Mitchell Krems, released the following statement:

“My client is innocent. It was the nanny who fled. He is being targeted because he exercised his constitutional right to have a large family.”

Los Angeles County District Attorney Nathan Hochman and Sheriff Robert Luna held a press conference after the arrests, during which they outlined the disturbing allegations against the defendants and Hochman described the Arcadia mansion as “a house of horrors.”

Prosecutors said the couple misrepresented their family circumstances to some surrogates, including the number of children they already had.

The two-story home was allegedly equipped with 32 motion-activated surveillance cameras, allowing the defendants to monitor the children and nannies. Prosecutors say young children were subjected to repeated corporal punishment and abuse by nannies at so-called “learning centers.”

Zhang and Xuan are accused of teaching the nannies physical discipline and telling them not to leave visible marks on the children.

Prosecutors are asking that bail be set at $100 million in the case, describing the couple as a flight risk, according to the prosecutor.

The couple has been under surveillance since last summer, when they were arrested on suspicion of child endangerment and then released without being charged.

A search warrant obtained by ABC7 On Your Side Investigates shows the investigation began after their then 2-month-old son suffered an apparent head injury.

According to investigators, the couple’s nanny, Chunmei Li, was caught on a security camera holding the baby inside the home. The warrant states that footage shows the baby “crying for a few seconds until a loud thud or bang is heard,” and that “the crying suddenly stops.” Police wrote that after Li’s “attempt to wake him up” was “unsuccessful,” the video shows Li “shaking him.”

Li remains at large, according to investigators.

Last summer, the 21 children found in the home were placed in the custody of the Los Angeles County Department of Children and Family Services.

The investigation determined that the children are the product of a surrogacy operation owned by Zhang and Xuan.

This is a developing story. This article will continue to be updated as more information becomes available.