Key Takeaways
- The plea: Paul Beers, 67, of Clinton, New Jersey, pleaded guilty on Oct. 29, 2026, to wire fraud for running a Ponzi scheme through KJM Financial, his college and financial planning business in Bedminster.
- The money: Beers took in more than $11 million from at least 65 victims from as early as January 2015 to November 2025, and victims lost more than $9.7 million, prosecutors said.
- What's next: Sentencing is scheduled for March 9, 2027. The charge carries up to 20 years in prison, and his plea agreement requires restitution.
Paul Beers, the former owner of KJM Financial, a college planning and financial planning business in Bedminster, New Jersey, pleaded guilty on Oct. 29, 2026, to running a Ponzi scheme that cost at least 65 victims more than $9.7 million, the U.S. Attorney's Office for the District of New Jersey said.
How the KJM Financial Ponzi Scheme Worked
From as early as January 2015 through November 2025, Beers owned and operated KJM Financial, which provided college planning and consulting and financial planning services, according to the Justice Department. Over that period, prosecutors said, he accepted more than $11 million from at least 65 victims by promising to invest their money in various financial accounts, including guaranteed income contracts. A Ponzi scheme pays earlier investors with money from newer ones instead of real returns.
Instead of investing the money as promised, Beers used victim funds to pay his own business and personal expenses and to pay back certain investors to avoid detection, prosecutors said. At times he created false quarterly and other reports showing investment gains that did not exist. The scheme fell apart in November 2025.
"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," U.S. Attorney Robert Frazer said, according to WRNJ Radio.
Paul Beers Guilty Plea, Penalties and Sentencing Date
Beers pleaded guilty before U.S. District Judge Robert Kirsch in federal court in Trenton to a one-count information charging wire fraud. An information is a charging document filed by prosecutors without a grand jury indictment. The 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 requires Beers to pay restitution to his victims, and sentencing is scheduled for March 9, 2027.
"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," said Stefanie Roddy, special agent in charge of the FBI's Newark office. The FBI investigation is ongoing, and the Justice Department asks anyone who believes they may be a victim of Paul Beers to report it to NK-Victim-Assistance@FBI.GOV.
What More Than $9.7 Million in Losses Means for 65 Victims
On prosecutors' minimum figures, more than $9.7 million in losses across at least 65 victims averages about $149,000 per victim, by WYDE's arithmetic. Prosecutors said Beers used some victim funds to pay back certain investors and created false reports showing gains, both to avoid detection, and the scheme ran for more than a decade before it fell apart in November 2025. WYDE has also covered a $400 million crypto Ponzi guilty plea this year.
People Also Ask
What did Paul Beers plead guilty to?
Paul Beers pleaded guilty on Oct. 29, 2026, to a one-count information charging wire fraud, for running a Ponzi scheme through KJM Financial in Bedminster, New Jersey, that cost at least 65 victims more than $9.7 million.
How much money did KJM Financial victims lose?
Victims of Paul Beers and KJM Financial suffered aggregate losses of more than $9.7 million, according to the U.S. Attorney's Office for the District of New Jersey. Paul Beers accepted more than $11 million from at least 65 victims from as early as January 2015 to November 2025.
When will Paul Beers be sentenced?
Paul Beers is scheduled to be sentenced on March 9, 2027. The wire fraud charge carries a maximum penalty of 20 years in prison, and his plea agreement requires restitution to victims.
Sources: U.S. Attorney's Office, District of New Jersey, WRNJ Radio.