Two Missouri men have pleaded guilty to running a Ponzi scheme that lasted nearly two decades and resulted in more than 90 victims losing at least $3 million. James “Jim” Johnson, 77, and Darrell Niswonger, 68, entered their pleas in U.S. District Court in Cape Girardeau on Friday. Each admitted to one count of wire fraud, securities fraud, and investment adviser fraud. Niswonger also pleaded guilty to four additional counts of wire fraud.
According to court documents, Johnson and Niswonger operated out of Perryville as Johnson & Niswonger Financial Resources LLC since 2002. They initially offered annuities but began facing financial difficulties by 2006. The two started offering what they described as tax-free and risk-free “municipal bonds,” but instead used client funds for personal expenses such as country club memberships, home improvements, educational costs for a relative, and regular salaries for themselves.
The plea agreements reveal that the men had clients sign simple investment agreements promising a guaranteed 5% return. Clients were persuaded to move money from legitimate investments into these fraudulent ones. Johnson and Niswonger discouraged withdrawals and urged investors to roll over their investments because there were not enough funds available.
Some victims discovered irregularities when attempting to withdraw funds; in one case, an investor learned his legitimate annuity had been accessed without consent. Another victim’s family was told withdrawal was not possible until the bonds matured.
Over the course of almost 20 years, millions of dollars were collected from friends, relatives, and neighbors. Many victims lost significant assets including inheritances and proceeds from home or farm sales.
When the business closed on April 22, 2025, it owed investors over $3 million but held less than $22,000 in its main account.
“Today, Jim Johnson and Darrell Niswonger finally admitted that they had been bilking clients for almost 20 years,” said U.S. Attorney Thomas C. Albus. “This fraud has affected a large number of Perryville-area residents, many of whom knew or were even related to Johnson and Niswonger. It has been not only a betrayal of trust but a major financial loss for them. We will do our best to try and recover as much money as possible for these victims.”
“One of the defendants stooped so low that he even swindled his own family members – an act that shows there is no line he wouldn’t cross,” said Special Agent in Charge Chris Crocker of the FBI St. Louis Division. “The U.S. Securities and Exchange Commission (SEC) says unlicensed, unregistered persons commit much of the investment fraud in the United States. Research the background of the person or firm before investing. The SEC has an online tool called, ‘Check Out Your Investment Professional,’ which can be used to vet a broker, investment adviser or a firm before trusting them with your money.”
Johnson and Niswonger are scheduled for sentencing on November 13. Wire fraud carries up to 20 years in prison with fines up to $250,000; securities fraud may result in up to 20 years’ imprisonment with fines up to $5 million; investment adviser fraud is punishable by up to five years in prison with fines up to $10,000.
Both men have agreed as part of their plea deals to forfeit Johnson’s home along with a vehicle—a 2019 Audi A5 Premium—and cash assets totaling more than $70,000 from bank and brokerage accounts.
The investigation was conducted by the FBI and U.S. Postal Inspection Service; Assistant U.S. Attorney Gwendolyn Carroll is handling prosecution duties.
