A Santa Barbara County investment advisor, Julie Anne Darrah, has admitted to defrauding elderly clients out of approximately $2.25 million. Darrah, 52, from Santa Maria, entered a guilty plea to one count of wire fraud and is currently free on a $50,000 bond.
Darrah operated Vivid Financial Management Inc. (VFM), an investment advisory business based in Santa Maria. She was registered with the United States Securities and Exchange Commission (SEC) as an investment advisor and held key roles within VFM from 2015 to 2021.
The fraudulent activities involved Darrah gaining control over her clients' assets without their consent. She liquidated securities holdings and transferred the proceeds into accounts she managed. This was facilitated by convincing victims to sign documents granting her authority over their trusts or bank accounts.
Darrah exploited the trust placed in her by clients, often assuring them she would care for them like family in their later years. This trust enabled her to secure the necessary signatures on documents used for misappropriating funds between November 2016 and July 2023. The stolen money funded personal expenses including real estate purchases, luxury vehicles, and other ventures. Some victims were left unable to afford end-of-life care due to these actions.
In addition to individual victims, a Minnesota-based investment advisory firm referred to as "Business Victim 1" in court documents was also deceived into acquiring VFM under false pretenses. The company suffered losses of around $5.4 million after discovering the fraud.
Acting United States Attorney Joseph McNally commented on the case: "The defendant took advantage of her clients’ trust," adding that many victims were elderly individuals whose funds were misused as if they were Darrah's own.
United States District Judge Otis D. Wright II has set a sentencing hearing for May 19 where Darrah could face up to 20 years in federal prison.
Previously, in October 2023, the SEC filed a civil complaint against Darrah related to this scheme. By December 2024, United States District Judge Dale S. Fischer ordered Darrah liable for $2,416,511 including interest.
The investigation was conducted by the FBI and the Federal Deposit Insurance Corporation Office of Inspector General with Assistant United States Attorney Kerry L. Quinn prosecuting the case.
For seniors aged 60 or older who have been financially defrauded, assistance is available through the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice service offers support and guidance in various languages including English and Spanish.