By: Richard L. Smith
A Somerset County financial planner has pleaded guilty to federal wire fraud charges after admitting he operated a Ponzi scheme that left dozens of investors with losses exceeding $9.7 million.
According to information released by U.S. Attorney Robert Frazer, Paul Beers, 67, of Clinton, entered his guilty plea in Trenton federal court before U.S. District Judge Robert Kirsch.
Federal prosecutors said Beers operated KJM Financial, a Bedminster-based business offering college planning, consulting, and financial planning services.
Between January 2015 and November 2025, Beers collected more than $11 million from at least 65 investors who believed their money would be placed into legitimate financial investments, including guaranteed income contracts.
Instead, authorities said Beers diverted the funds to cover personal and business expenses while using money from newer investors to make payments to others.
Investigators also found that Beers provided clients with fabricated financial statements showing investment gains that did not exist, allowing the scheme to continue for more than a decade.
The operation collapsed in November 2025, leaving victims with combined losses exceeding $9.7 million.
Federal officials said the case highlights the financial devastation caused when individuals entrusted with managing investments misuse their clients' money.
Beers faces a maximum sentence of 20 years in federal prison and a $250,000 fine.
A sentencing date was not provided in the announcement.