Justin Deiter Allegedly Excessively Traded Customer Accounts
The White Law Group is investigating potential securities lawsuits involving financial advisor Justin Deiter of Garden City, New York.
According to FINRA, the regulator has reportedly suspended financial advisor Justin Deiter from working as a broker for six months beginning February 18th, 2025.
FINRA reportedly found that Deiter willfully violated Reg BI (Regulation Best Interest) by allegedly recommending to two retail customers a series of trades that were excessive and not in the best interest of the customers, one of whom was purportedly an 89-year-old retiree.
The findings reportedly stated that Deiter’s trading resulted in high turnover rates and cost-to-equity ratios that exceeded the traditional guideposts of six and 20 percent. Deiter’s alleged recommended transactions in the first customer’s account generated $19,792 in commissions and caused $25,291 in realized losses.
The trading in the elderly customer’s account allegedly generated $28,264 in commissions and caused $33,363 in realized losses.
Excessive Trading
As of June 30, 2020, broker-dealers and their associated persons must comply with Regulation Best Interest (Reg BI) under the Securities Exchange Act of 1934. Reg BI requires that when making a securities recommendation to a retail customer—including recommendations about transactions, strategies, or account types—the broker or firm must act in the best interest of the customer, without placing their own interests ahead of the customer’s.
The Care Obligation within Reg BI further requires firms to exercise reasonable diligence, care, and skill to ensure that even a series of individually suitable recommendations is not excessive when considered together and remains in the customer’s best interest based on their investment profile.
Excessive trading, also known as churning, is evaluated using several factors, including the turnover rate (how often the portfolio is traded), the cost-to-equity ratio (the return required to break even after costs), and patterns of in-and-out trading. A turnover rate of six or more, or a cost-to-equity ratio above 20%, generally signals excessive trading under Reg BI.
FINRA BrokerCheck: Justin Deiter
According to his FINRA BrokerCheck, Justin Deiter reportedly has four customer complaints filed against him. Allegation include, Unsuitability, Breach of Contract, Breach of Fiduciary Duty, among others. He was reportedly registered with the following firms during his career, among others.
01/29/2020 – 09/28/2023 SPARTAN CAPITAL SECURITIES, LLC (CRD#:146251) GARDEN CITY, NY
05/25/2018 – 02/12/2020 ALLIED MILLENNIAL PARTNERS, LLC (CRD#:16569)Garden City, NY
06/28/2011 – 06/08/2018 AEGIS CAPITAL CORP. (CRD#:15007) MELVILLE, NY
Failure to Supervise
When financial professionals recommend investments, they are supposed to act in their clients’ best interests. But sometimes, that doesn’t happen.
All broker-dealers have a responsibility to adequately supervise their advisors. They must ensure they have procedures and systems in place to detect broker misconduct. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.
Class Action Lawsuit vs. Individual FINRA Arbitration Lawsuit
You may wonder whether a large class action lawsuit is a better litigation option than an individual FINRA arbitration case. The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option. Class action lawsuits as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.
Justin Deiter: FINRA Lawsuits
If you have suffered investment losses with Justin Deiter and Spartan Capital, the securities attorneys at the White Law Group may be able to help you by filing a FINRA lawsuit. Please call our offices at (888) 637-5510 for a free consultation. We take cases in all 50 states including California.
National Securities Attorneys
The White Law Group, LLC is a national law firm in securities fraud, securities arbitration, investor protection, and securities regulation and compliance. With offices in Chicago, Illinois and Seattle, Washington, the firm is dedicated to assisting investors across all 50 states with claims against their brokerage firms. Since its founding in 2010, The White Law Group has handled over 800 FINRA arbitration cases.
Last modified: May 7, 2025
