CLINTON, N.J. (Hunterdon County) — A 67-year-old Hunterdon County man who operated a college consulting and financial planning business in Somerset County has pleaded guilty to running a Ponzi scheme that defrauded at least 65 victims out of more than $9.7 million over more than a decade, federal authorities announced.
Paul Beers, of Clinton, pleaded guilty on Thursday to one count of wire fraud before U.S. District Judge Robert Kirsch in Trenton federal court, according to U.S. Attorney Robert Frazer.
Federal prosecutors said Beers owned and operated KJM Financial in Bedminster Township from as early as January 2015 through November 2025. The business provided college planning, consulting and financial planning services.
During that period, Beers fraudulently accepted more than $11 million from at least 65 victims by promising to invest their money in various financial accounts, including guaranteed income contracts, according to court documents and statements made in court.
Instead of investing the funds as promised, Beers misappropriated the money to pay his personal and business expenses. He also used money from some investors to repay others, allowing the scheme to continue while avoiding detection, prosecutors said.
“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 said.
Federal authorities said Beers also created false quarterly and other financial reports that purported to show investment gains on the money victims had entrusted to him. In reality, the reports were fabricated to conceal the fraudulent activity.
The scheme collapsed in November 2025, leaving victims with combined losses exceeding $9.7 million, according to prosecutors.
“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.”
The wire fraud charge carries a maximum penalty of 20 years in federal prison and a fine of $250,000, or twice the gross financial loss to victims or gain to the defendant, whichever is greater.
Under the terms of his plea agreement, Beers is required to make restitution to his victims.
Sentencing is scheduled for March 9, 2027.
