A former Santa Maria Valley financial adviser accused of defrauding multiple clients and a business now faces one federal criminal charge of wire fraud related to the allegations that amounted to millions of dollars in losses.

Julie Anne Darrah, 51, intends to plead guilty after signing an agreement last month for what’s now her third case in federal court but the first involving a criminal charge. The criminal complaint says her actions caused $7.7 million in losses.

She has not yet entered her guilty plea in federal court. Once she does, a sentencing date will be set. Based on the charge, Darrah could spend up to 20 years in prison, although it likely will be less. 

In one of those two civil cases against her, last month Darrah agreed to pay Minnesota-based Wealth Enhancement Group $7 million for false statements that led the firm to buy Vivid Financial Management. 

Darrah served as co-founder and director of wealth management of Central Coast-based Vivid Financial Management Inc. from 2015 through 2021. She also was Vivid’s chief compliance officer, which she prominently touted as one of her credentials to help people navigate through complex financial situations. 

Vivid sold to Wealth Enhancement Group with Darrah serving as senior vice president and financial advisor from January 2022 until July 2023, when she was relieved of all duties, placed on leave and ultimately fired as her crimes came to light. The firms had several offices on the Central Coast with Darrah based in Old Town Orcutt.

Authorities say Darrah misappropriated and stole approximately $2.25 million from individual clients of her investment advisory business using various methods.

She gained control of the accounts in various ways, including as trustee of their trusts or getting clients to provide standing letters of authorization authorizing Darrah to transfer funds. In some cases, Darrah was a signatory on individual victims’ bank accounts or held power of attorney. 

Nearly all of her victims were elderly, and at least some of whom were receiving end-of-life care, according to federal court documents. 

“Defendant took advantage of these victims’ vulnerable circumstances in stealing money from individuals who were least able to protect themselves or recover from their losses,” the plea agreement said.

In all, investigators say she defrauded more than five individuals. 

“She then used those commingled funds to buy and improve properties, pay her personal expenses, buy luxury vehicles, and buy and operate food-related businesses at a loss,” the plea deal states.

Her other businesses included PC&J Ventures, a food business she had with two friends operating The Homestead Deli in Old Town Orcutt and Cups & Crumbs in Santa Maria and Old Town Orcutt. Those other businesses, including Lompoc’s Central Coast Specialty Foods, abruptly closed in the aftermath of the allegations last year.

The criminal complaint also contends Darrah convinced the Minnesota firm WEG to acquire Vivid “based on false and misleading statement and the concealment of material facts, including her theft of individual victims’ funds.”

That resulted in about $5.4 million in losses to WEG, identified as “Business Victim 1” after the fraud was discovered, federal documents stated.

The allegations against Darrah became public when WEG filed a lawsuit in Minnesota federal court last year making multiple contentions, including that she deceived the firm, negligently misrepresented her ties to clients and more.

The 36-page civil complaint contended that Darrah “curated her reputation as a wealthy community patron” by backing local businesses. She served on several boards for nonprofit organizations.

“For vulnerable clients, Darrah was more than a financial advisor: She spent many years — for some clients, over a decade — gaining their trust by incrementally inserting herself into their lives as ‘the daughter they never had,’” the civil complaint states.

The lawsuit cited 13 causes of action, including fraudulent inducement by misrepresenting Vivid’s financial status, fraud following execution of the purchase agreement, breach of contract, negligent misrepresentation, professional negligence, unjust enrichment and more.

Last month, Darrah and WEG entered into a settlement agreement in which she agreed to pay the Minnesota firm $7 million to resolve claims in the lawsuit.

The settlement also prohibits Darrah from contacting any current or former customers of WEG, its subsidiaries or Vivid Financial Management.

“Regardless of whether there is expressed and documented permission from a customer … defendant is permanently restrained and enjoined from talking to any customer about WEG or Vivid Financial Management Inc. business, or matters pertaining to such customers’ personal finances, investments, financial plan, trusts and/or estate plan,” the agreement states. 

In addition the WEG civil lawsuit, Darrah also was named in a case filed by the Securities and Exchange Commission. 

In the past year, Darrah has sold off various properties and taken other measures to get the funds for reimbursing the various victims she defrauded.