According to FINRA, Justin Ray Deiter has been suspended from association with any FINRA member firm for six months for willfully violating Regulation Best Interest (Reg BI).

Deiter recommended to two retail customers a series of trades that were excessive and not in the customers' best interest. One of the customers was an 89-year-old retiree. The trading resulted in high turnover rates and cost-to-equity ratios that exceeded the traditional guideposts of six and 20 percent—standard metrics used to identify excessive trading.

In the first customer's account, Deiter's recommended transactions generated $19,792 in commissions and caused $25,291 in realized losses. In the elderly customer's account, trading generated $28,264 in commissions and caused $33,363 in realized losses.

Excessive trading, also known as churning, occurs when a broker engages in excessive buying and selling in a customer's account primarily to generate commissions rather than to benefit the customer. This practice is particularly concerning when it involves elderly or vulnerable investors who may not fully understand the activity in their accounts.

Due to Deiter's financial status, no monetary sanction was imposed. The suspension runs from February 18, 2025, through August 17, 2025.

What Investors Can Learn: Watch for warning signs of excessive trading: frequent transactions, high commission charges relative to account value, and losses despite active trading. Elderly investors and their families should be particularly vigilant. Review account statements carefully and question any trading activity that seems unnecessary.