By Jorge Mercado Tuesday, March 4th, 2025

A Santa Barbara County investment advisor who admitted to defrauding elderly clients for years to the tune of $2.25 million pleaded guilty to wire fraud on March 4.

Darrah, 52 and a resident of Santa Maria, is currently free on a $50,000 bond, according to a U.S. Department of Justice press release.

She faces a statutory maximum sentence of 20 years in federal prison.

United States District Judge Otis D. Wright II scheduled a May 19 sentencing hearing.

Darrah worked at a Santa Maria-based investment advisory business called Vivid Financial Management.

From 2015 to 2021, Darrah was the president, chief compliance officer, and one-third shareholder of VFM, which also had locations in Arroyo Grande, Orcutt and Lompoc.

During her scheme, Darrah stole approximately $2.25 million from her firm’s clients from approximately November 2016 to July 2023.

Some of the elderly people she defrauded were also receiving end-of-life care, according to court documents.

According to the court documents, Darrah defrauded victims by obtaining control of their assets, and then — without the victims’ knowledge or consent — liquidating their security holdings and transferring the proceeds to accounts she controlled.

She also convinced victims to sign documents making her the trustee of their trusts or a signatory on their bank accounts or giving her power of attorney over their brokerage accounts and allowing her — as their investment advisor — to transfer funds from their accounts to other bank accounts, including to her own accounts, according to the court documents.

She used stolen funds to buy properties for herself, pay other personal expenses, buy luxury vehicles, and operate other business ventures, according to court documents.

Darrah also convinced a company identified in the plea agreement as “Business Victim 1,” a Minnesota-based investment advisor firm, to acquire VFM based on false and misleading statements and the concealment of material facts, including not telling that firm about her theft of individual client funds, according to court documents.

After the fraud was discovered, Business Victim 1 incurred approximately $5.4 million in losses, the report said.

“The defendant took advantage of her clients’ trust,” said Acting United States Attorney Joseph McNally.

“Many of them were elderly and she stole from them using their funds as her own. Our seniors should never have to question whether their money is safe. She will now be held accountable for her actions.”

Previously, in October 2023, the SEC filed a civil complaint against Darrah in connection with this scheme.

In December 2024, United States District Judge Dale S. Fischer found Darrah liable to pay $2.4 million, including interest.

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