Investment adviser hit by emergency asset freeze

investmentnews.com:

The U.S. Securities and Exchange Commission (SEC) has intervened to protect what it claims are vulnerable investors, securing an emergency asset freeze against Julie Anne Darrah, a Santa Maria-based investment adviser, and her hybrid RIA Vivid Financial Management, Inc. (VFM).

The regulatory body alleges that Darrah and VFM engaged in a fraudulent scheme, misappropriating over $2 million from elderly clients.

According to the SEC, Darrah preyed on at least nine clients, primarily elderly women, many of whom depended on her for their financial stability. The complaint details how Darrah exploited her position of trust, taking control of her clients’ assets through various means, including becoming the trustee of their trusts, manipulating bank and brokerage accounts, and obtaining power of attorney.

Darrah’s alleged misconduct extends to the misuse of her clients’ funds for personal gain, including purchasing and improving real estate, maintaining a lavish lifestyle, and funding failing restaurant ventures. The SEC claims that Darrah went to great lengths to conceal her activities, manipulating client information, providing false disclosures, and even backdating documents to thwart regulatory scrutiny.

The charges filed in the U.S. District Court for the Central District of California on October 20, 2023, accuse Darrah and VFM of violating multiple securities laws. Darrah has consented to preliminary injunctive relief, including an asset freeze and other emergency measures, to safeguard the remaining assets and prevent further harm to investors.

The SEC’s Los Angeles and Chicago Regional Offices are pursuing the ongoing investigation.

Vivid Financial was founded in 2015, by Julie Darrah, Brad Boulton, Todd Woodland and