Southern California Couple Arrested in Child Abuse Investigation

Police presence outside a suburban home during a child abuse investigation.

News Summary

A Southern California couple, Silvia Zhang and Guojun Xuan, faces a child abuse investigation involving 21 children, including a hospitalized infant. The authorities removed 15 children from their home and are also looking into allegations of unethical surrogacy practices related to their real estate business. Multiple lawsuits have been filed by former employees, highlighting a chaotic and abusive work environment. The investigation, which involves the FBI and local child services, continues as the couple denies the allegations and seeks to clear their names.

Southern California Couple Arrested in Child Abuse Investigation Involving 21 Children and Surrogacy Allegations

Arcadia, California — A couple from Southern California, Silvia Zhang (38) and Guojun Xuan (65), are at the center of a child abuse investigation that involves allegations of physical and emotional abuse of multiple children, including infants. The investigation also raises concerns regarding possible surrogacy and illegal activities linked to the couple’s operations.

Details of the Investigation and Arrests

Authorities conducted a search of the couple’s residence in Arcadia after a 2-month-old baby was hospitalized with traumatic head injuries suspected to be the result of abuse. During the search, police confirmed they removed 15 children from the couple’s home. The children, whose ages range from 2 months to 13 years, include several infants reportedly delivered through surrogacy arrangements.

On May 9, Zhang and Xuan were arrested on suspicion of felony child endangerment and neglect. Despite the arrest, both were released pending further investigation. An arrest warrant has also been issued for Chunmei Li, a 56-year-old nanny seen on video abusing the 2-month-old baby. Authorities have confirmed that video evidence exists showing physical and emotional abuse inflicted on some children by nannies working for the couple.

Surrogacy and Child Care Allegations

Investigators are uncertain about the total number of children born through surrogacy, but authorities disclosed that some children were delivered by surrogate mothers coordinated through linked agencies. Officials confirmed that a surrogacy agency associated with the couple, Mark Surrogacy Investment LLC, has been terminated. Several women who served as surrogates reported being misled about the scope of the arrangement and the eventual custody of the children.

One surrogate, Kayla Elliott, stated that she was unaware of Zhang and Xuan’s other children and is now seeking custody of her own child, who was placed in foster care following the investigation.

Legal and Ethical Troubles Linked to Business Practices

The couple operates within the real estate sector through their company, Yudao Investments. Several lawsuits filed by former employees accuse them of unethical and illegal activities in their business dealings. Employees have reported substandard working conditions, including late payments, denial of breaks, and unsafe environments.

A former assistant described witnessing frequent violent arguments between Zhang and Xuan. Another ex-employee, Alejandro Diaz, filed a lawsuit alleging wrongful termination and physical assault by Xuan, who reportedly threatened him with a toy gun. The lawsuit was settled under mutual confidentiality agreements, but Diaz described his experience working with them as chaotic and troubling.

Law Enforcement and Ongoing Investigation

The Arcadia Police Department, in collaboration with the FBI and the Los Angeles County Department of Children and Family Services, continues to investigate potential illegal activities, including a surrogacy scheme. Authorities aim to determine whether the couple engaged in illicit practices beyond child abuse, such as unlawful surrogacy contracts or trafficking.

Public Statements and Denials

While the investigation progresses, Zhang has publicly denied the allegations, asserting her confidence in clearing her name. She maintains her innocence regarding the misconduct claims and looks forward to vindicating herself through the ongoing review.

Background Context and Broader Implications

The case highlights complex issues surrounding surrogacy, child welfare, and illegal business practices in Southern California. The couple’s involvement in both real estate and surrogacy arrangements has come under scrutiny amid concerns about exploitation and unethical conduct. The investigation continues to unfold as authorities seek to protect the children involved and bring any wrongdoers to justice.

Most of the affected children are between 1 and 3 years old, with a few younger and older children also identified. The investigation aims to uncover whether the couple’s activities involved any criminal schemes or violations of child protection laws. Officials warn that further arrests or legal actions could occur as the case develops.

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STAFF HERE MILWAUKEE WRITER
Author: STAFF HERE MILWAUKEE WRITER

MILWAUKEE STAFF WRITER The MILWAUKEE STAFF WRITER represents the experienced team at HEREMilwaukee.com, your go-to source for actionable local news and information in Milwaukee, Milwaukee County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Summerfest, Milwaukee Film Festival, and the Milwaukee Boat Show. Our coverage extends to key organizations like the Metropolitan Milwaukee Association of Commerce and Visit Milwaukee, plus leading businesses in manufacturing and brewing that power the local economy such as Harley-Davidson and MillerCoors. As part of the broader HERE network, we provide comprehensive, credible insights into Wisconsin's dynamic landscape.

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