For more than 10 years, a Somerset County-based business owner cultivated the trust of families looking toward college planning and financial services, turning that faith into a $9.7 million Ponzi scheme that unraveled in late 2025.
Paul Beers, 67, of Clinton, New Jersey, pleaded guilty to a one-count wire fraud information before U.S. District Judge Robert Kirsch in Trenton federal court, U.S. Attorney Robert Frazer announced. Operating KJM Financial out of Bedminster, New Jersey, Beers admitted to misappropriating funds from at least 65 victim investors between January 2015 and November 2025.
The operation relied on a mechanism of deception wrapped in financial guidance. Beers induced clients to hand over cash under the promise that their money would be invested in various financial accounts, including guaranteed income contracts. Instead of making those investments, Beers diverted over $11 million to cover personal and business expenses, while recycling a portion of the incoming capital to pay off earlier investors and sustain the illusion of returns.
To keep the scheme hidden from detection, Beers routinely generated fabricated quarterly and other reports that displayed nonexistent investment gains. That facade collapsed in November 2025 when the financial architecture finally failed, leaving aggregate victim losses exceeding $9.7 million.
Federal officials emphasized the profound personal toll of the fraud alongside the financial wreckage.
Beers did more than steal money — he stole trust, security, and years of financial planning from hardworking families. 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. — Special Agent in Charge Stefanie Roddy
A maximum prison sentence of 20 years and a $250,000 fine—or double the total loss suffered by victims or profit acquired by the defendant, whichever is greater—apply to the sole wire fraud charge. Under the terms of the plea agreement entered with the government, Beers is required to make restitution to his victims. U.S. District Judge Robert Kirsch scheduled sentencing for March 9, 2027.
Federal Bureau of Investigation special agents directed by Newark Special Agent in Charge Stefanie Roddy spearheaded the inquiry, receiving support from the Somerset County Prosecutor’s Office under Prosecutor John P. McDonald and Chief of County Detectives Meredith McKay, along with the Bedminster Township Police Department led by Chief Francesco Bernardo. Assistant U.S. Attorney Jonathan S. Garelick represents the government in the prosecution.
Authorities note that the federal investigation remains active. Individuals who believe they may be victims of Paul Beers can direct inquiries and reports to the FBI at NK-Victim-Assistance@FBI.GOV.
