Justin Deiter Of Spartan Capital Securities Fined By FINRA For Excessive Trading

FINRA suspended securities broker Justin Ray Deiter [CRD: 5225102, Garden City, New York], and investors complained about him, according to public information located on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Deiter worked for Spartan Capital Securities LLC from January 29, 2020, to September 28, 2023. Keep reading to find out more about Deiter’s disclosures.

FINRA Sanctioned Deiter For Excessive Trading

Notably, on February 6, 2025, FINRA issued Case: 2018056490323 sanctioning Justin Deiter for infractions. Specifically, Deiter was suspended for six months in all capacities,. Mainly, FINRA alleged that Deiter recommended an excessive series of trades to two retail investors.

According to the Acceptance, Waiver, and Consent, FINRA stated that between February 2020 and March 2022, when he worked for Spartan Capital Securities LLC, Deiter recommended trading that was excessive in two retail investors’ accounts, which FINRA said led to high turnover rates and high cost-to-equity ratios, along with significant realized losses. FINRA tied the conduct to the Best Interest Obligation under Exchange Act Rule 15l-1(a)(1) (Regulation Best Interest), and also cited FINRA Rules 2111 and 2010.

FINRA’s letter described that one investor was a conservative investor who relied heavily on Deiter’s recommendations, and another investor was an elderly retiree. FINRA indicated that the trading in both accounts was not in the investors’ best interest in light of their investment profiles, and it stated that Deiter violated Exchange Act Rule 15l-1(a)(1) and violated FINRA Rules 2111 and 2010.

Justin Deiter Disclosed Unsuitable Recommendations, Breach Of Fiduciary Duty Allegations By Aegis Capital Corp. Client

Specifically, a client of Aegis Capital Corp. disputed Justin Deiter’s sales practices by filing FINRA Arbitration No. 22-00077. Allegedly, Deiter breached his fiduciary duty and the broker made unsuitable recommendations. It appears that Deiter caused the client to incur damages linked to stocks. Consequently, Aegis Capital Corp. opted to settle the matter on February 18, 2022, by compensating the client in the amount of $10,000.

Aegis Capital Corp. Investor Accused Deiter Of Breach Of Contract

Particularly, an Aegis Capital Corp. client filed FINRA Arbitration: 20-00036 about Justin Deiter. Mainly, the client alleged that Deiter breached his fiduciary duty, the broker breached a contract, and the broker made unsuitable recommendations. Because of this, the client allegedly incurred damages. Therefore, on February 4, 2022, Aegis Capital Corp. settled this matter by paying the client $37,747.89 in damages.

Have You Made Investments Through Financial Advisor / Securities Broker Justin Deiter?

Do you need clarification on any investment losses relating to Justin Deiter? Contact Soreide Law Group online or at (888) 760-6552 and speak with a securities attorney regarding a possible recovery of your investment losses. Soreide Law Group has recovered losses for clients located throughout the United States. Also, the firm represents investors on a contingency fee basis and advances all costs. Deiter and brokerage firms Deiter worked for deny allegations of sales practice violations.