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Former California Advisor's Assets Frozen in $2.25 Million Theft Case

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4.9

Andrew R. Michaud

• October 26, 2023

A former California advisor, Julie Anne Darrah, has found herself in hot water as a federal court freezes her assets following allegations of stealing $2.25 million from her clients. The Securities and Exchange Commission (SEC) has taken action in this case, seeking a permanent injunction, repayment of the misappropriated funds, interest, and a civil monetary penalty.

As the story unfolds, attempts to reach Darrah for comment have proved unsuccessful. She has not responded to messages sent through Facebook, and her LinkedIn page seems to have been taken down. The sealed court record of the SEC's lawsuit in California has left it uncertain as to who is representing Darrah in this matter.

This is not the only legal battle Darrah is facing. Wealth Enhancement Group, based in Minneapolis, has filed a separate lawsuit against her in Minnesota. They are seeking damages and disgorgement related to the same alleged fraud. Notably, the Wealth Enhancement Group acquired Vivid Financial Management, the firm Darrah once led, in December 2021.

Although court records indicate that three California-based attorneys have been retained by Darrah for the Minnesota case, it remains unclear if they have been admitted to the state bar and officially listed as counsel of record. Requests for comment made to these attorneys, who belong to the law firm Goodwin, have gone unanswered.

Allegations of Betrayal by Prominent Community Member

The allegations against Darrah portray her as a respected member of her community who had cultivated strong relationships with her clients. However, it is alleged that she took advantage of their trust by seizing control of their accounts and diverting funds for her own benefit. The Securities and Exchange Commission (SEC) has also accused Darrah of channeling money towards a struggling restaurant company that she co-owns.

Abrupt Closure of Businesses

Recent reports from local news outlets in California’s rural Santa Maria Valley area reveal the sudden closure of three businesses associated with Darrah. Both a coffee shop and two delis made identical announcements on social media, citing an unforeseen circumstance as the reason for their indefinite closure.

Restaurant Group Named in Complaint

Darrah’s restaurant group, PC&J Joint Ventures, has been named as a defendant in the SEC complaint. The allegations assert that Darrah's fraudulent activities are still ongoing. The SEC claims that she maintains control over certain client assets and has been actively selling and dissipating the ill-gotten proceeds of her misappropriation.

Attempts to Influence Former Clients

In addition to the SEC complaint, Vivid Financial Management's parent company, WEG, has filed a lawsuit against Darrah. WEG requested an injunction from a Minnesota court to prevent Darrah from contacting her former clients. The company alleges that she has been trying to persuade them to sign backdated documents and has been making assurances of recompense in an attempt to influence them.

Termination and Continued Support

Darrah was fired by WEG on September 15th. It is important to note that no other individuals at the firm, besides Darrah, have been accused of any wrongdoing. WEG has emphasized its ongoing support for the Vivid Financial Management practice.