Wealth Enhancement Group, the Minneapolis-based wealth manager with more than $142 billion in client assets, has been involved in four notable lawsuits in recent years. The most serious is the firm’s fraud case against former advisor Julie Darrah, who was sentenced to more than 10 years in federal prison in May 2025. The others — a finder’s fee contract claim by an alleged co-founder, a pregnancy discrimination suit by a former employee, and a Connecticut client-solicitation case against a departing advisor — remain active or have no publicly reported outcome.
The Julie Darrah Fraud Case
The Darrah matter is the most consequential litigation tied to WEG. Darrah was a financial advisor whose firm, Vivid Financial Management, WEG acquired in late 2021. Vivid held roughly $675 million in client assets, and Darrah joined WEG as a senior vice president and financial advisor after the deal.1Seward & Kissel LLP IM Deals Blog. WEG Acquires Vivid Less than two years later, WEG fired her for cause and sued.
WEG’s Civil Complaint
WEG sued Darrah on September 29, 2023, in the District of Minnesota (Case No. 0:23-cv-03034-WMW-JFD). The complaint alleges a long-running scheme to misappropriate millions from elderly clients. According to WEG, Darrah used a disbarred attorney to draft documents appointing her as trustee, beneficiary, and power of attorney over client accounts, giving her control outside the firm’s oversight.2Arizent. WEG v. Darrah Minnesota Complaint
The complaint says Darrah impersonated clients to financial institutions, intercepted their mail, used her own contact information for account authentication, and falsified Vivid’s books. It describes an 83-year-old client with dementia whose accounts fell from roughly $521,000 to about $66,000, and an 85-year-old widow whose balance dropped from approximately $350,000 to $13,000. WEG claims Darrah funneled approximately $3.6 million in stolen funds into failing outside businesses, including a restaurant, a bakery, and a sausage company. The firm also alleges Darrah lied during acquisition due diligence about her trustee roles and Vivid’s financial records, and that after being fired she tried to get victims to sign backdated documents recasting the thefts as “loans.”2Arizent. WEG v. Darrah Minnesota Complaint
SEC Action and $4 Million Judgment
Three weeks after WEG filed suit, the SEC brought an emergency action against Darrah, Vivid Financial Management, and PC&J Joint Ventures, a California restaurant company Darrah co-owned (Case No. 2:23-CV-08843-CAS-AGR). The SEC alleged that from November 2016 through July 2023, Darrah misappropriated approximately $2.25 million from nine elderly clients, liquidating their securities and moving the proceeds into accounts she controlled. PC&J was named as a relief defendant for allegedly receiving stolen funds.3SEC. SEC Complaint Against Julie Anne Darrah The court granted a temporary restraining order freezing her assets. In October 2025, a $4 million judgment was entered: $2 million in civil penalties against the defunct advisory firm and $2 million in disgorgement assessed jointly against the firm and Darrah.4Law360. SEC Lands $4M Judgment in Advisory Firm Fraud Case
Criminal Sentencing
Darrah pleaded guilty to one count of wire fraud on March 4, 2025. On May 19, 2025, U.S. District Judge Otis D. Wright II sentenced her to 121 months in federal prison. The Department of Justice said some victims “were left in desperate circumstances, without the money to pay for end-of-life care,” and that a Minnesota-based firm, understood to be WEG, incurred approximately $5.4 million in losses tied to her conduct. A restitution hearing was to be scheduled separately.5U.S. Department of Justice. Santa Barbara County Investment Advisor Sentenced to Over 10 Years in Prison for Stealing Nearly $2.3 Million From Elderly Clients
Bernard Finder’s Fee Lawsuit
Gerald “Jerry” Bernard, who describes himself as a WEG co-founder, sued the firm in Hennepin County, Minnesota, in June 2024. Bernard and his consulting firm, Uncommon Wisdom, allege WEG failed to pay finder’s fees owed under a 2018 contract that hired him to identify acquisition targets.6Wealthmanagement.com. Alleged Wealth Enhancement Group Co-Founder Sues Firm No independent verification of Bernard’s co-founder role has been reported.7Trellis.law. Gerald Bernard and Uncommon Wisdom Inc. v. Wealth Enhancement Group LLC
The agreement entitled Bernard to a 4% commission on an acquired firm’s trailing 12-month revenue for deals he brought in, or 2% if an external advisor was involved, capped at $500,000 per transaction. The suit focuses on three deals:
- Summit Wealth Management (January 2019), where Bernard says he brokered the deal but was told he was “too late” and denied a fee.
- Financial Wealth Management (December 2020), which Bernard says he was never told closed and for which he received nothing.
- SVA Financial Group, introduced in 2016, for which Bernard says WEG’s chief strategy officer, Jim Cahn, offered $200,000; Bernard refused, believing he was owed $500,000.6Wealthmanagement.com. Alleged Wealth Enhancement Group Co-Founder Sues Firm
Bernard further alleges WEG presented him with a “take it or leave it” payment agreement to settle the SVA and Financial Wealth Management claims, threatening to terminate him and forfeit all fees if he refused, and that he signed under coercion. A WEG spokesperson called the claims “without merit” and said the firm would defend against them. The case was pending as of the most recent available information.
Fox Pregnancy Discrimination Lawsuit
In February 2025, former employee Amy Fox filed a federal employment discrimination and retaliation suit against WEG in the Western District of Pennsylvania (Case No. 2:25-cv-00281). Fox, hired in July 2022 as a transition support client specialist, alleges she faced discrimination during a high-risk pregnancy and was fired after returning from maternity leave.8Wealthmanagement.com. Former Employee Claims Wealth Enhancement Discriminated Against Her During Pregnancy
Fox says she told the firm she was pregnant in the summer of 2023. Her supervisor, Nicole Parsons, allegedly denied requested medical accommodations and labeled Fox “underperforming” after she questioned PTO policies on medical appointments. Fox gave birth in December 2023, returned from leave on March 4, 2024, and was terminated on April 9, 2024. WEG said it was “unable to comment on pending litigation.”
The case is active before Judge Nora Barry Fischer. As of June 2026, the parties were still litigating evidentiary issues, and the judge issued a memorandum opinion in March 2026.9PACER Monitor. Fox v. Wealth Enhancement Group, LLC
Connecticut Client Solicitation Lawsuit
In late 2023, WEG sued in Connecticut state court, alleging that a financial advisor identified in court records as Downey covertly resigned, moved to Prime Capital Investment Advisors, and solicited nearly 30 WEG clients in violation of a restrictive covenant in his advisor agreement.10Law360. Conn. Financial Adviser’s New Firm Stole Clients, Suit Says The suit named Downey’s new firm, listed in some records as Financial Network Ltd., as a defendant.11Law.com. Wealth Enhancement Group LLC v. Financial Network Ltd. The outcome has not been publicly reported in the available records.
Regulatory Record and Firm Background
WEG’s brokerage arm has a clean regulatory record. FINRA’s BrokerCheck report for Wealth Enhancement Brokerage Services (CRD# 130139) lists zero firm-level disclosures, and the firm is not currently suspended with any regulator.12FINRA. BrokerCheck Report – Wealth Enhancement Brokerage Services, LLC The firm-level record is separate from the individual conduct at issue in the Darrah case.
Wealth Enhancement Group was founded in 1997 and is headquartered in Minneapolis. Jeff Dekko has served as CEO since 2003, when the firm managed roughly $600 million. Under his leadership, WEG has completed more than 68 acquisitions and grown to over $142 billion in client assets across more than 182 offices. It is backed by private equity firms TA Associates, which invested in 2019, and Onex Corporation, which joined as an equal capital partner in 2021.13PR Newswire. Wealth Enhancement Announces Acquisition of The H Group and Affiliated Wealth Management Practice14Wealth Enhancement Group. Wealth Enhancement Group Welcomes Equity Investment From Onex Several of the lawsuits trace back to that acquisition strategy, from the finder’s fees Bernard says he was owed on acquired firms to the advisor WEG inherited through the Vivid deal.