Can you recover investment losses due to recommendations by former Mutual Securities, Inc. broker Julie Darrah (CRD# 2102014)? She was registered with Mutual Securities, Inc. in Orcutt, California, from 2013 to 2022, and with National Planning Corporation in Santa Maria, California, from 2001 to 2013.
She was registered with Wealth Enhancement Advisory Services in Orcutt, California, from 2022 to 2023, when he was terminated regarding, “The reported individual was terminated during an internal review for fraud, wrongful/unauthorized taking of client property, and for violations of investment-related securities law (including those related to custody of client assets), firm policies and expected industry and professional standards, including failure to cooperate with the firm’s internal review.”
In October 2023, the Securities and Exchange Commission opened an investigation alleging the broker’s “scheme to misappropriate millions of dollars from the bank and brokerage accounts of her clients and spend those funds on herself and on relief defendant PC&J Joint Ventures, LLC, an ailing restaurant company that Darrah co-owns. In doing so, Darrah abused her position as an investment adviser to the clients that she stole from, and violated the fiduciary duties she owed those advisory clients. Darrah’s misconduct is ongoing because she still retains control of certain client assets and has been actively selling and dissipating the ill-gotten proceeds of her misappropriation.” The complaint took place while she was registered with Vivid Financial Management, Inc., which was at the time an SEC-registered investment adviser partially owned by Julie Darrah and where she served as its president and chief compliance officer. The SEC alleged that she “primarily targeted elderly female advisory clients for the scheme, many of whom had come to rely on Darrah for their financial well-being.” The SEC alleges that she misappropriated approximately $2.25 million in funds from the accounts of nine defrauded clients, who hired Vivid Financial Management, Inc. and the broker as their investment adviser.
Julie Darrah Customer Complaints
She has been the subject of one customer complaint, according to her CRD report:
December 2023. “Client alleges that during the period between June 28, 2013, and January 4, 2022, the representative sold nearly all of the securities held in client’s accounts and transferred the proceeds from the sale of the securities to client’s bank accounts, which she controlled. The RR later stole $702,647.97 from the client’s bank accounts.” The case is currently pending. The complaint took place while he was registered with Mutual Securities, Inc.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Mutual Securities, Inc. may be liable for investment or other losses suffered by Julie Darrah’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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