E. Martin Estrada, U.S. Attorney | U.S. Attorney's Office for the Central District of California
A Santa Barbara County investment advisor has admitted to defrauding elderly clients of approximately $2.25 million. Julie Anne Darrah, 52, from Santa Maria, pleaded guilty to one count of wire fraud in Los Angeles. She is currently free on a $50,000 bond.
Darrah operated Vivid Financial Management Inc., an investment advisory business based in Santa Maria. From 2015 to 2021, she served as the president and chief compliance officer and held a one-third ownership stake in the firm.
According to court documents, Darrah exploited her position by gaining control over her clients' assets without their knowledge or consent. She liquidated their securities and transferred the proceeds into accounts she controlled. To facilitate this scheme, Darrah persuaded victims to sign documents that granted her trustee status or power of attorney over their accounts.
"She used this trust to convince them to sign the documents that she then used to steal money from them," authorities stated. The fraudulent activities occurred between November 2016 and July 2023, leaving some victims financially destitute and unable to afford end-of-life care.
Darrah also misled a Minnesota-based investment advisory firm, referred to as "Business Victim 1" in court papers, into acquiring VFM by concealing her fraudulent activities. As a result, Business Victim 1 suffered losses amounting to approximately $5.4 million.
Acting United States Attorney Joseph McNally commented on the case: "The defendant took advantage of her clients’ trust. Many of them were elderly and she stole from them using their funds as her own."
United States District Judge Otis D. Wright II has scheduled Darrah's sentencing for May 19, where she faces up to 20 years in federal prison.
In October 2023, the SEC filed a civil complaint against Darrah related to this scheme. Subsequently, in 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 prosecution led by Assistant United States Attorney Kerry L. Quinn from the Major Frauds Section.
For those aged 60 or older who have been victims of financial fraud, assistance is available through the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311), offering support in English, Spanish and other languages.
