An Orcutt investment advisor should spend 10 years in prison for committing “a horrible, monstrous crime” of defrauding her elderly clients of their life savings, federal prosecutors argued, while Julie Darrah’s attorney pushed for a three-year sentence. 

Darrah pleaded guilty in March to one count of wire fraud and is scheduled to be sentenced Monday in a federal courtroom in Los Angeles.

While running an investment advisory business, Darrah’s thefts left some victims without money to pay for end-of-life care and deprived others of the opportunity to live out their lives with dignity and independence, according to authorities.

Investigations revealed that Darrah preyed on her clients, convincing them to treat her like a daughter as she gained their trust to commit the fraud.

“Some of her victims became depressed and stopped interacting with the world, losing their faith in humanity and will to live,” Assistant U.S. Attorney Kerry Quinn wrote in her sentencing memorandum.

“This is a heart-wrenching, devastating case, and there is no happy ending. Defendant deserves a lengthy prison sentence and no mercy from this court,” Quinn added.

Between 2016 and 2023, Darrah stole approximately $2.25 million from her clients, nearly all of whom were elderly and at least some of whom were receiving end-of-life care. 

Darrah’s attorneys, Torrance-based Edward Robinson and Brian Robinson, urged the judge to sentence her to three years, noting the 52-year-old defendant’s lack of criminal history and claiming childhood abuse for causing the crimes. 

The defense attorneys contended that Darrah is “deeply remorseful for her behavior” and has set aside $1,027,974.46, at least, for restitution.

“Ms. Darrah has acknowledged and taken responsibility for the serious nature and circumstances of her offense. Her extraordinary efforts to make restitution are consistent with her deep shame and her desire to rectify the harm she caused,” the defense attorneys wrote. 

They cited that the “terrible abuse by her mother” had some causal connection to the crime. They claimed Darrah’s mother resented her and chose alcohol and men over the daughter.

“The aggressive and cruel nature of her mother’s abandonment of Ms. Darrah surely had an impact on Ms. Darrah’s behavior in this case. As she will tell this court, her desperate need for maternal affirmance created the opportunity for this crime,” the sentencing memo added.

She faces a maximum sentence of 20 years in state prison, according to the U.S. Attorney’s Office.

Darrah operated Vivid Financial Management Inc., which had offices in Old Town Orcutt, Lompoc and Arroyo Grande. 

An investment advisor registered with the U.S. Securities and Exchange Commission, Darrah was the president, chief compliance officer and a one-third shareholder of VFM.

Her scheme unraveled after Vivid Financial sold in late 2021 to Minnesota-based Wealth Enhancement Group, which later filed a federal lawsuit against Darrah.

The SEC soon followed with its own legal action, prompting the sale of Darrah’s various properties. 

In total, the scheme caused $7.7 million in financial harm, including the loss for Wealth Enhancement Group, the U.S. Attorney’s Office said.

None of the partners in her various businesses has been implicated in the criminal activity.

The sentencing document filed by the federal prosecutors included statements from victims about the toll of Darrah’s crimes. 

“The defendant’s actions have had a devastating impact on me financially, emotionally and physically,” according to the victim known as M.S. 

Remaining scared, guilty, ashamed, sad and angry, the victim recounted being forced to move from an 1,800-square-foot home and now lives in a 700-square-foot apartment.

“I was in denial that my money was really gone. I never in a million years would have believed that the defendant could do this to me,” M.S. wrote. 

A friend of another victim, B.C., who has since died, shared about the Darrah’s guise of friendship to instead take advantage of a vulnerable elderly woman.

“This was not just a financial crime; it was a deep betrayal of trust and kindness. The emotional toll of this betrayal was immeasurable,” B.C.’s friend said, recalling the deep depression experienced by a woman known as a legendary educator and feisty woman.

Upon learning of Darrah’s actions, B.C.’s health deteriorated quickly, the friend wrote. The victim also experienced shame and embarrassment at being taken advantage of by Darrah.

She had ownership stakes in The Homestead, a deli in Old Town Orcutt, two Cups & Crumbs stores in the Santa Maria Valley, Central Coast Specialty Foods in Lompoc and the Sausage Co. in Orcutt.

In October 2023, those other businesses closed abruptly in the wake of Darrah’s fraud and have prompted other lawsuits.

She had portrayed herself as a wealthy community patron who was active with nonprofit organizations in the Santa Maria Valley.