College Planner Admits $9.7 Million Ponzi Scheme That Ran More Than 10 Years

Published Nov. 2, 2026. Case statuses are current as of that date.

Families went to him for help planning how to pay for college and how to invest for the future. According to federal prosecutors in New Jersey, a financial and college planner instead spent more than a decade taking their money, sending fake reports to cover it up and paying some investors with money from others.

Paul Beers, 67, of Clinton, N.J., pleaded guilty on Oct. 29, 2026, before U.S. District Judge Robert Kirsch in Trenton federal court to a one-count information charging him with wire fraud, the U.S. Attorney's Office for the District of New Jersey announced [1]. Prosecutors say he took more than $11 million from at least 65 victims, and that losses exceeded $9.7 million.

Beers has been convicted by his guilty plea. He has not yet been sentenced.

How the scheme worked

According to documents filed in the case and statements made in court, as summarized by the U.S. Attorney's Office [1]:

• The business. From as early as January 2015 through November 2025, Beers owned and operated KJM Financial in Bedminster, N.J., which offered college planning and consulting and financial planning services, among other things.
• The promise. Beers "induced the victim investors to provide him with cash with the promise that their funds would be invested in various financial accounts, including guaranteed income contracts."
• The diversion. Instead, he "misappropriated the funds," using them for his own business and personal expenses, and to pay back certain investors "to further his scheme and avoid detection."
• The cover-up. "At times, Beers created false quarterly and other reports purporting to show investment gains." Prosecutors say the reports "were fake and used to mask Beers's scheme."
• The collapse. "In November 2025, the Ponzi scheme fell apart," the release says.

"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.

FBI Newark Special Agent in Charge Stefanie Roddy said Beers "did more than steal money — he stole trust, security, and years of financial planning from hardworking families." She added: "History is littered with fraudsters who seem to forget the simple principle that Ponzi schemes always fall apart" [1].

What happens next

The wire fraud charge carries a maximum of 20 years in prison and a fine of $250,000, or twice the gross loss to victims or gain to the defendant, whichever is greatest. Beers's plea agreement requires him to pay restitution to his victims. Sentencing is scheduled for March 9, 2027 [1].

The FBI investigated, with help from the Somerset County Prosecutor's Office and the Bedminster Township Police Department. Assistant U.S. Attorney Jonathan S. Garelick is prosecuting. Beers is represented by Michael Baldassare of Baldassare & Mara, LLC, according to the release.

The investigation is ongoing. The U.S. Attorney's Office says anyone who believes they may be a victim of Paul Beers may report their circumstances to NK-Victim-Assistance@FBI.GOV [1].

Why trusted advisers are hard to doubt

This case did not involve cold calls or flashy online ads. According to prosecutors, it ran through an established local business offering services, like college planning, that families sought out themselves. Prosecutors say it lasted about 10 years before it collapsed.

Ponzi schemes can last a long time when new money keeps coming in and some investors are paid back on time. The SEC's investor education site lists "overly consistent returns," "issues with paperwork" and "difficulty receiving payments" among the common warning signs, and notes that "account statement errors may be a sign that funds are not being invested as promised" [2].

Red flags

These are general warning signs of adviser and Ponzi fraud, not findings about any defendant:

• Your money goes to the adviser or the adviser's company, not to an account in your name at an independent brokerage, bank or insurance company.
• Statements come only from the adviser. You should also receive statements directly from the firm that holds your money (the custodian or insurer).
• "Guaranteed" returns. If an adviser describes a product as guaranteed, ask which insurer or institution guarantees it and confirm with that company directly.
• Delays or excuses when you try to withdraw money.
• The adviser or firm isn't registered. Look them up on the SEC's Investment Adviser Public Disclosure site, FINRA BrokerCheck, and with your state securities or insurance regulator.

What to do if you're targeted

1. If you invested with Paul Beers or KJM Financial, contact the FBI at NK-Victim-Assistance@FBI.GOV, as the U.S. Attorney's Office directs.
2. Gather your records, including checks, wire confirmations and every statement or report you received.
3. Contact the institution named on your statements directly, using contact information you find yourself, to confirm whether an account really exists.
4. Report other investment fraud to the SEC at sec.gov/tcr, your state securities regulator, and the FBI at ic3.gov.
5. Age 60 or older? The DOJ Elder Justice Hotline is 1-833-372-8311 (1-833-FRAUD-11).

Case status (as of Nov. 2, 2026)

Defendant	Court	Status as of Nov. 2, 2026	Source
Paul Beers, 67, Clinton, N.J. (KJM Financial, Bedminster)	Federal, D.N.J. (Trenton)	Pleaded guilty Oct. 29, 2026, to one count of wire fraud; restitution required under plea agreement; sentencing scheduled March 9, 2027	[1]

Statuses can change.

Sources

1. U.S. Attorney's Office, District of New Jersey, "Former College Consulting and Financial Planning Business Owner Admits to Defrauding 65 Victims in $9.7 Million Ponzi Scheme," Oct. 30, 2026. https://www.justice.gov/usao-nj/pr/former-college-consulting-and-financial-planning-business-owner-admits-defrauding-65
2. U.S. Securities and Exchange Commission, Investor.gov, "Ponzi Scheme," accessed Nov. 2, 2026. https://www.investor.gov/protect-your-investments/fraud/types-fraud/ponzi-scheme

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