Former College Consulting and Financial Planning Business Owner Admits to Defrauding 65 Victims in $9.7 Million Ponzi Scheme

TRENTON, N.J. - A former college and financial planner who operated a Somerset County-based business admitted to running a Ponzi scheme that defrauded victims out of more than $9.7 million over a period of more than 10 years, U.S. Attorney Robert Frazer announced.

Paul Beers, 67, of Clinton, New Jersey, pleaded guilty yesterday before U.S. District Judge Robert Kirsch in Trenton federal court to a one-count Information charging him with wire fraud.

"The defendant turned a position of trust into an instrument of fraud, preying on community members who believed their money was being invested for their families' future. He misappropriated $11 million and used false quarterly reports to conceal his scheme, leaving victims with losses exceeding $9.7 million. Those who exploit the trust of their own community for personal gain will be held accountable"

- U.S. Attorney Robert Frazer

"Beers did more than steal money - he stole trust, security, and years of financial planning from hardworking families," said Special Agent in Charge Stefanie Roddy. "Victims in this investigation placed their faith in Beers, who promised to safeguard their futures, only to have him exploit that trust for his personal gain. History is littered with fraudsters who seem to forget the simple principle that Ponzi schemes always fall apart. FBI Newark will remain focused on finding justice for the victims."

According to documents filed in this case and statements made in court:

From as early as January 2015 through November 2025, Beers owned and operated KJM Financial in Bedminster, New Jersey, which provided, among other things, college planning and consulting, and financial planning services. From approximately January 2015 through approximately November 2025, Beers, operating through KJM Financial, orchestrated a Ponzi-like scheme and fraudulently accepted over $11 million from at least 65 victims. Beers induced the victim investors to provide him with cash with the promise that their funds would be invested in various financial accounts, including guaranteed income contracts. Instead of investing their money as promised, however, Beers misappropriated the funds. He used victim funds to pay off his own business and personal expenses, as well as to pay back certain victim investors to further his scheme and avoid detection. At times, Beers created false quarterly and other reports purporting to show investment gains on the funds they had entrusted to him. In reality, the reports were fake and used to mask Beers's scheme. In November 2025, the Ponzi scheme fell apart. Overall, Beers's victims suffered aggregate losses of more than $9.7 million.

The wire fraud charge carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross loss to the victims or gain to the defendant, whichever is greatest. The plea agreement entered into between the Government and Beers requires Beers to make restitution to his victims. Sentencing is scheduled for March 9, 2027.

U.S. Attorney Frazer credited special agents with the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, for the investigation leading to the guilty plea. He also thanked the Somerset County Prosecutor's Office, under the direction of Prosecutor John P. McDonald and Chief of County Detectives Meredith McKay, and the Bedminster Township Police Department, under the direction of Chief Francesco Bernardo, for their assistance in the investigation.

The investigation launched by the Federal Bureau of Investigation is ongoing. Anyone who believes they may be a victim of Paul Beers may report their circumstances to: [email protected].

The government is represented by Assistant U.S. Attorney Jonathan S. Garelick of the U.S. Attorney's Office Criminal Division in Trenton.

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Defense counsel: Michael Baldassare, Esq., Baldassare & Mara, LLC.