Former Broker Justin R. Deiter Sanctioned for Excessive Trading and Rule Violations

Justin R. Deiter, a former General Securities Representative, was found to have excessively traded the accounts of two retail clients—one of whom was a senior—between February 2020 and March 2022. According to FINRA, Deiter’s actions violated the Best Interest Obligation under Regulation BI (Rule 15l-1 of the Securities Exchange Act of 1934) and FINRA Rules 2111 and 2010. As a result, Deiter has been suspended from associating with any FINRA member for six months.

Deiter began his career in the financial industry in May 2007. From January 2020 to September 2023, he was registered with Spartan Capital Securities, LLC. While he is no longer associated with any FINRA member, he remains under FINRA’s jurisdiction due to the timing of the alleged misconduct and his resignation.

Regulation BI requires brokers to act in the best interest of their clients when recommending any securities or investment strategies. This means putting the client's financial well-being ahead of their own commissions or incentives. FINRA Rule 2111 (the suitability rule) reinforces this by requiring that each recommendation be appropriate based on the client’s investment profile. Rule 2010 adds a layer of ethical responsibility, mandating high standards of commercial honor and fair practice.

Deiter’s conduct violated these rules because he executed numerous trades that resulted in high turnover rates and excessive cost-to-equity ratios—indicators of unsuitable and harmful trading practices. In one case, a client incurred $25,291 in losses while paying nearly $20,000 in commissions. In another, an elderly client saw losses over $33,000 from trades that generated over $28,000 in fees. Such activity suggests Deiter prioritized commissions over client outcomes, failing to exercise the care and judgment required by the rules.

Lufrano Law, LLC is a national investment litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. Please contact us at (800) 627-2179 for more information if you have been the victim of investment negligence or fraud.