FINRA Suspends Justin Deiter for Alleged Excessive Trading

Justin Deiter (CRD #: 5225102), a broker registered with Spartan Capital Securities, has been suspended by FINRA, according to his BrokerCheck record, accessed on April 3, 2025. If you have questions about his alleged conduct as a broker, keep reading.

FINRA Suspension

On February 6, 2025, Justin Deiter consented to the entry of findings that he allegedly recommended an excessive series of trades to two clients between February 2020 and March 2022.

A Letter of Acceptance, Waiver & Consent (AWC), alleged that Justin Deiter engaged in the following trading:

• Customer A: A conservative investor who allegedly regularly followed Justin Deiter’s trade recommendations. He allegedly recommended 32 transactions that resulted in an annualized turnover rate of 7 and an annualized cost-to-equity ratio of 34%. This trading allegedly generated $19,792 in commissions and led to $25,291 in realized losses.
• Customer B: Allegedly an 89-year-old retiree with an investment objective of speculation. Justin Deiter allegedly recommended 28 transactions that resulted in an annualized turnover rate of 14 and an annualized cost-to-equity ratio of 35%, as well as generated $28,264 in commissions and led to $33,363 in realized losses.

Several factors are considered when determining if a series of trades is excessive. A cost-to-equity ratio above 20% or a turnover rate of 6 or higher are both red flags for excessive trading.

The AWC concluded that these allegations constituted violations of Regulation Best Interest and FINRA Rules 2111 and 2010.

Regulation Best Interest

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take into account investors’ financial goals when recommending investments. Brokers must consult investors’ profiles, which contain information about their tax status, investing experience, and risk tolerance.

Trades must also be quantitatively suitable, meaning the number of trades must serve an investor’s needs. Each trade comes with a transaction fee, so excessive trading will result in high fees for the investor.

Investors who rely on brokers for recommendations may be able to recover their losses by seeking out FINRA arbitration.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Sanctions

Justin Deiter consented to a six-month suspension from associating with FINRA members. His suspension began on February 18, 2025, and will end on August 17, 2025. You can access the AWC here.

Investor Dispute

On May 29, 2018, multiple investors filed a dispute alleging that Justin Deiter made unsuitable investment recommendations. This dispute was settled for $365,000.

Background Information

Justin Deiter has passed the following exams:

• Securities Industry Essentials Examination – SIE
• General Securities Representative Examination – Series 7
• Uniform Investment Adviser Law Examination – Series 65
• Uniform Securities Agent State Law Examination – Series 63

He previously worked for the following firms:

• Spartan Capital Securities (CRD#:146251)
• Allied Millennial Partners (CRD#:16569)
• Aegis Capital Corporation (CRD#:15007)
• Global Arena Capital Corporation (CRD#:16871)
• Prestige Financial Center (CRD#:30407)

Kurta Law Can Help

If you worked with Justin Deiter and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.