Santa Maria investment advisor Julie Anne Darrah admits to stealing almost $2.25 million from clients in U.S. District Court Tuesday
LOS ANGELES, Calif. – Julie Anne Darrah, 52, of Santa Maria, pled guilty Tuesday to stealing about $2.25 million from elderly clients of her investment advisory business.
Darrah was the president, chief compliance officer, and one-third shareholder of Vivid Financial Management Inc., a Santa Maria-based investment advisory business, from 2015 through 2021 stated a press release Tuesday from the U.S. Attorney's Office for the Central District of California.
During that time, Darrah was able to steal almost $2.25 million from her firm's clients by gaining control of assets and then - without the knowledge or permission of victims - liquidated client's security holdings and transferred the proceeds to accounts she controlled detailed the U.S. Attorney's Office.
As part of the scheme, Darrah convinced victims to sign documents making her the trustee of their trusts or a signatory on their bank accounts or granting her power of attorney over their brokerage accounts explained the U.S. Attorney's Office.
According to the U.S. Attorney's Office, Darrah was allowed by some clients to directly transfer funds from their bank accounts into her own accounts under the guise of working as their investment advisor.
Darrah was known to gain the trust of elderly clients by promising to take care of them in their later years and stole money from November of 2016 to July of 2023 that she used to buy herself multiple properties, pay for personal expenses, buy luxury vehicles, and operate other businesses shared the U.S. Attorney's Office.
Additionally, Darrah convinced a Minnesota-based investment firm identified in court documents as "Business Victim 1" to acquire Vivid Financial Management Inc. based on false and misleading statements and the concealment of material facts detailed the U.S. Attorney's Office.
In October of 2023, the U.S. Securities and Exchange Commission (SEC) filed a civil complaint against Darrah in connection with the ongoing scheme and in December of 2024, U.S. District Judge Dale S. Fischer found Darrah liable to pay $2,416,511 including interest noted the U.S. Attorney's Office.
After the discovery of the fraud, the Minnesota business incurred an approximately $5.4 million loss stated the U.S. Attorney's Office.
Wealth Enhancement Group terminated Darrah's employment following an internal investigation on Sep. 15, 2023, detailed the original SEC complaint.
"The defendant took advantage of her clients’ trust," said Acting United States Attorney for the Central District of California Joseph McNally. "Many of them were elderly and she stole from them using their funds as her own. Our seniors should never have to question whether their money is safe. She will now be held accountable for her actions."
On Tuesday, Darrah pled guilty to one count of wire fraud and she is currently free on a $50,000 bond added the U.S. Attorney's Office.
U.S. District Judge Otis D. Wright II scheduled a sentencing hearing for Darrah on May 19 where she faces a maximum statutory sentence of 20 years in federal prison.
