E. Martin Estrada, U.S. Attorney | U.S. Attorney's Office for the Central District of California
A Santa Barbara County investment advisor, Julie Anne Darrah, was sentenced to 121 months in federal prison for stealing approximately $2.25 million from elderly clients. The sentencing took place in Los Angeles under United States District Judge Otis D. Wright II, who will set a restitution hearing at a later date.
Darrah, aged 52 and residing in Santa Maria, pleaded guilty on March 4 to one count of wire fraud. She carried out the scheme by gaining control over her victims' assets and liquidating their security holdings without their knowledge or consent. The proceeds were then transferred to accounts she controlled.
To facilitate the thefts, Darrah convinced her victims to sign documents that made her trustee of their trusts or signatory on their bank accounts. She also obtained power of attorney over brokerage accounts, allowing her to transfer funds into her own accounts. This fraudulent activity spanned from November 2016 to July 2023.
Darrah exploited the trust placed in her by clients, often assuring them she would care for them like a daughter in their later years. The stolen funds were used for personal expenses such as purchasing properties and luxury vehicles and operating other business ventures. Some victims faced financial hardship and were unable to afford end-of-life care after the fraud was uncovered.
Additionally, Darrah deceived a Minnesota-based investment advisor firm referred to as "Business Victim 1" into acquiring VFM through false statements and concealment of material facts about her thefts from individual clients. This led Business Victim 1 to incur losses amounting to approximately $5.4 million.
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 found Darrah liable for $2,416,511 including interest.
The FBI and the Federal Deposit Insurance Corporation Office of Inspector General conducted the investigation into this matter with Assistant United States Attorney Kerry L. Quinn prosecuting the case.
For individuals 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). Managed by the Department of Justice's Office for Victims of Crime, this hotline provides personalized support in English, Spanish, and other languages.
