TRENTON, NJ — October 31, 2026 — A New Jersey financial planner has pleaded guilty to operating a multimillion-dollar Ponzi scheme that defrauded at least 65 investors and caused more than $9.7 million in financial losses over a decade, federal prosecutors announced Friday.
Paul Beers, 67, of Clinton, New Jersey, admitted to one count of wire fraud before U.S. District Judge Robert Kirsch in Trenton federal court on October 29.
According to the U.S. Attorney’s Office for the District of New Jersey, Beers collected more than $11 million from investors who believed their money was being placed into legitimate financial accounts.
Instead, prosecutors said, he used the funds for personal expenses, business operations, and payments to other investors.
A Decade-Long Investment Scheme
From January 2015 through November 2025, Beers owned and operated KJM Financial, a company based in Bedminster, Somerset County.
The business offered college planning, consulting, and financial planning services to families seeking to save for education, retirement, and other long-term financial goals.
Federal prosecutors said Beers persuaded clients to invest money in financial products, including guaranteed income contracts.
Rather than investing the funds as promised, he diverted the money into accounts he controlled.
Some of the money was used to repay earlier investors, creating the appearance that the investments were legitimate and generating returns.
This practice is characteristic of a Ponzi scheme, in which money from investors is used to sustain an operation rather than being invested as represented.
False Financial Reports Concealed the Fraud
According to federal court documents, Beers created false quarterly financial statements showing investment gains that did not exist.
These reports encouraged clients to believe their savings were growing while concealing the actual use of their money.
The fraudulent operation continued for approximately ten years before collapsing in November 2025.
By that time, at least 65 victims had suffered combined losses exceeding $9.7 million.
The victims were located in several states, including New Jersey, New York, Pennsylvania, Connecticut, Massachusetts, and Florida.
Federal Prosecutors Describe Betrayal of Trust
U.S. Attorney Robert Frazer said Beers exploited the confidence of families who believed they were securing their financial futures.
Federal officials emphasized that the case involved more than financial losses, as victims had entrusted the defendant with money intended for important life decisions.
FBI Newark Special Agent in Charge Stefanie Roddy also highlighted the emotional and financial consequences of investment fraud, noting that victims had placed their trust in someone they believed would protect their savings.
Up to 20 Years in Federal Prison
Beers faces a maximum penalty of 20 years in federal prison for wire fraud.
He could also receive a fine of $250,000, or a larger amount calculated under federal sentencing provisions based on the financial losses or gains associated with the offense.
Under his plea agreement, Beers must provide restitution to his victims.
His sentencing is scheduled for March 9, 2027.
The investigation was conducted by the FBI, with assistance from the Somerset County Prosecutor’s Office and the Bedminster Township Police Department.
Federal authorities say the investigation remains ongoing.
Anyone who believes they may have been a victim of Paul Beers can contact the FBI at NK-Victim-Assistance@FBI.GOV.
A Warning About Investment Fraud
The case highlights the risks investors face when financial arrangements are not independently verified.
Fraudulent investment schemes can continue for years when clients rely on account statements and promised returns without confirming that the underlying assets exist.
Financial experts generally recommend verifying an adviser’s registration, reviewing financial statements directly with the institution holding the investments, and questioning arrangements that lack independent documentation.
For the families affected by this case, however, the consequences are already significant.
What appeared to be years of financial planning and investment growth ultimately resulted in millions of dollars in losses and a federal criminal prosecution.
Sources: U.S. Department of Justice, October 30, 2026; RLS Media, October 31, 2026
By NJ RADAR Team