The national adoption agency knew it was doomed. It kept taking families’ money
A California-based adoption agency abruptly closed its doors in 2017, devastating thousands of families throughout the country.
A USA TODAY investigation found officials at that agency, the Independent Adoption Center, knew what was coming. So did government officials.
Families waiting to adopt suffered the consequences.
“It’s honestly one of the most despicable things that I’ve ever encountered personally,” said Chara Powell, one of the agency’s California clients. “It’s dishonorable to me. You didn’t hold up your end of the bargain.”
Our investigation examined what went wrong. Here's some of what we found:
How did the adoption agency deal with its troubles?
In September 2015, two clients frustrated with the agency’s services analyzed its finances and issued a warning to leadership: Unless significant changes were made, the IAC was in danger of collapsing.
Agency officials made some changes, but not enough to recover. They knew the end was near, yet records show they continued to enroll new clients and ask for more money from existing clients – up to the very week the center closed. As things worsened, employees posted glowing reviews of the IAC online, which pushed down negative comments from frustrated clients.
What did the government do about the agency’s troubles?
California state officials were warned in December 2015 that the Independent Adoption Center was having financial problems, according to records we obtained through a public records request. The state was also told the center “is not financially able to provide the services which it offers,” “retaliates against the clients” and “has a discriminatory and nonstandard refund policy.”
The state opened an investigation on Jan. 11, 2016 but took little action. In the chaos after the center closed, records show state officials tried to rewrite the timeline to minimize their own inaction and protect themselves from litigation.
The California Department of Social Services denied our interview requests. Spokesman Jason Montiel said the department prioritizes complaints involving potential risks to health and safety, and the complaints against the IAC did not fit in that category.
What happened to the families?
Many families were blindsided by the Independent Adoption Center's permanent closure on Jan. 31, 2017.
Some adopted later through other agencies. But for about a third of the 150 people who talked to us, the dream of becoming a parent ended with the IAC.
“My heart couldn’t go through it again,” New Mexico resident Cary Virtue said.
Some were in the middle of adoptions that hadn’t been finalized at the time of the closure.
“There was no direction for waiting families, no reassurance for families like ours,” Powell said.
Would they be able to keep their son? Was their adoption secure? Would Social Services knock on the door one day and demand they turn over their baby?
To get the full story, check out our investigation:
'We were conned': How one adoption agency’s demise gutted American families
Marisa Kwiatkowski is a reporter on the USA TODAY investigations team, focusing primarily on children and social services. Contact her at mkwiatko@usatoday.com, @byMarisaK or by phone, Signal or WhatsApp at (317) 207-2855.
This article originally appeared on USA TODAY: How a national adoption agency fell apart, devastating families
