By: Richard L. Smith
A Hunterdon County man who operated a financial planning business in Somerset County has admitted to defrauding dozens of investors in a scheme that resulted in more than $9.7 million in losses.
According to U.S. Attorney Robert Frazer, Paul Beers, 67, of Clinton, pleaded guilty to wire fraud before U.S. District Judge Robert Kirsch in Trenton federal court.
Federal authorities said Beers operated KJM Financial in Bedminster, offering college planning, consulting, and financial services.
Between January 2015 and November 2025, Beers collected more than $11 million from at least 65 investors, promising to place their money into financial accounts and guaranteed income investments.
Instead, investigators said Beers diverted the funds to cover personal and business expenses while using money from newer investors to repay others.
To conceal the operation, Beers provided clients with fabricated financial statements showing investment gains that did not exist.
The scheme unraveled in November 2025, leaving victims with combined losses exceeding $9.7 million.
The investigation involved the FBI’s Newark office, which emphasized the financial and personal impact the fraud had on families who trusted Beers with their savings.
Beers faces up to 20 years in federal prison and significant financial penalties. Under his plea agreement, he must also pay restitution to victims.
Sentencing is scheduled for March 9, 2027.