Todd Paradise: Ex-Cambridge Advisor’s Clients Allege $1mm Loss

Baltimore, Maryland financial advisor Todd Paradise (CRD# 4248813) allegedly over-concentrated a customer’s portfolio and caused seven-figure damages, according to a recent lawsuit. Financial Industry Regulatory Authority and Securities and Exchange Commission records show that the former Cambridge Investment Research broker is currently registered as an investment advisor with WPG Financial Group.

A recent article published by Financial Advisor reports that a pair of Cambridge Investment Research clients sued the firm, alleging that Mr. Paradise and another advisor, Steve Gessner, “over[-]concentrated their portfolio in illiquid, private investments that were inappropriate for their risk profile and that caused a loss of at least $1 million.”

In the clients’ lawsuit, they also allege “breach of fiduciary duty, negligence and negligent supervision, and violations of the Maryland Securities Act.” As the report describes, the lawsuit alleges that Mr. Paradise and the other advisor over-concentrated the clients’ assets in “several high-risk and alternative investments,” including the KBS Growth & Income REIT and oil and gas drilling funds. The clients are seeking a jury trial, according to the report, as well as compensatory and punitive damages.

Mr. Paradise’s BrokerCheck report discloses one investor complaint. Filed in 2023, it alleges that as a representative of Cambridge Investment Research he recommended investments that were “too risky and unsustainable.” The pending complaint alleges unspecified damages.

According to the Financial Industry Regulatory Authority and the Securities and Exchange Commission, Todd Paradise holds 24 years of securities industry experience. Based in Baltimore, Maryland, he has been registered as an investment advisor with WPG Financial Group since 2018. His past registrations include United Planners’ Financial Services of America, Cambridge Investment Research, Woodbury Financial Services, and Mony Securities Corporation. His credentials include the passage of five securities industry qualifying exams: the Investment Company Products/Variable Contracts Representative Examination, or Series 6; the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; the Uniform Securities Agent State Law Examination, or Series 63; and the Uniform Investment Adviser Law Examination, or Series 65. He is licensed in Maryland. (Information current as of August 20, 2024.)

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