Justin Ray Deiter, of Garden City, New York, a stockbroker previously registered with Spartan Capital Securities LLC, has been suspended for six months by Financial Industry Regulatory Authority (FINRA) from associating with any FINRA member in any capacity because Deiter violated Regulation Best Interest (Reg BI) by recommending a series of excessive transactions that were not in the best interest of his customers, including an 89-year-old retiree. Letter of Acceptance, Waiver, and Consent No. 2018056490323 (February 6, 2025).
According to the AWC, between February 2020 and March 2022, Deiter engaged in excessive trading in the accounts of two customers while registered with Spartan Capital Securities LLC.
In one case, Deiter’s recommendations in a 49-year-old customer’s account led to an annualized turnover rate of seven and a cost-to-equity ratio of 34 percent, generating $19,792.00 in commissions while causing $25,291.00 in realized losses. In another case, Deiter’s trading in an elderly retiree’s account resulted in an annualized turnover rate of 14 and a cost-to-equity ratio of 35 percent, generating $28,264.00 in commissions and causing $33,363.00 in realized losses.
FINRA found that Deiter violated Securities Exchange Act of 1934 Rule 15l-1(a)(1) (Reg BI) and violated FINRA Rules 2111 and 2010.
FINRA Public Disclosure shows that Deiter was referenced in five customer initiated investment related disputes concerning Deiter’s conduct while associated with securities broker dealers. On March 31, 2017, a customer filed an investment related complaint involving Deiter’s conduct in which the customer requested $65,617.00 in damages based upon allegations that Deiter engaged in unauthorized trading and made unsuitable investment recommendations when Deiter was associated with Aegis Capital Corp. The complaint was closed on October 18, 2021, with no further action taken by the customer.
On May 1, 2019, a customer initiated investment related FINRA securities arbitration claim involving Deiter’s conduct was settled for $365,000.00 in damages based upon allegations that Deiter made unsuitable recommendations when Deiter was associated with Aegis Capital Corp. FINRA Arbitration No. 18-01743.
On February 3, 2020, a different customer initiated investment related FINRA securities arbitration claim involving Deiter’s conduct was settled for $14,000.00 in damages based upon allegations that Deiter engaged in unauthorized trading in stocks, charged excessive commissions, and made unsuitable recommendations when Deiter was associated with Allied Millennial Partners LLC. FINRA Arbitration No. 20-00002.
Deiter was also referenced in a FINRA securities arbitration claim that was settled for $37,747.89 in damages based upon allegations that Deiter breached his fiduciary duties, breached a contract, and made unsuitable recommendations when Deiter was associated with Aegis Capital Corp. FINRA Arbitration No. 20-00036 (February 4, 2022).
On February 18, 2022, another FINRA securities arbitration claim involving Deiter’s conduct was settled for $10,000.00 in damages based upon allegations that Deiter made unsuitable recommendations and breached his fiduciary duties in connection with the sale of stocks. FINRA Arbitration No. 22-00077.
Deiter was associated with Spartan Capital Securities LLC in Garden City, New York from January 29, 2020, to September 28, 2023. He was associated with Allied Millennial Partners LLC in Garden City, New York from May 25, 2018, to February 12, 2020, and Aegis Capital Corp. in Melville, New York from June 28, 2011, to June 8, 2018.
