Two Missouri men have pleaded guilty to running a Ponzi scheme that lasted nearly two decades and defrauded more than 90 people out of 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. Both admitted to one count each 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 as Johnson & Niswonger Financial Resources LLC from a storefront in Perryville since 2002. Initially offering annuities, they began experiencing cash flow issues by 2006. They then promoted what they described as tax-free and risk-free municipal bonds but used client funds for personal expenses including country club memberships, home improvements, educational costs for relatives, and salaries for themselves.
Clients were asked to sign agreements labeled as “Five Year Interest Bearing Note,” “Investment Note,” or “Five Year Interest Bearing Investment,” with the promise of a guaranteed 5% return. The defendants persuaded some clients to move money from legitimate investments into these fraudulent schemes.
When investors requested withdrawals, the pair often refused or diverted funds from other sources without consent. In one instance, money was taken from an investor’s legitimate annuity instead of the supposed bond investment. After nearly 20 years in operation, the business closed in April 2025 owing over $3 million while holding less than $22,000.
Victims included friends, relatives, and neighbors—many encouraged others to invest based on false claims about the investments’ performance. Losses reported include inheritances and life savings.
“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.”
Sentencing is set for November 13; wire fraud carries up to 20 years imprisonment and a $250,000 fine per count; securities fraud is punishable by up to 20 years imprisonment with up to a $5 million fine; investment adviser fraud can result in up to five years imprisonment and a $10,000 fine.
Both men agreed as part of their plea deals to forfeit assets including Johnson’s home in Perry County, a luxury vehicle purchased in 2019 (Audi A5 Premium), more than $61,000 held across two bank accounts plus over $10,000 from another brokerage account.
The investigation was conducted by both the FBI and U.S. Postal Inspection Service; Assistant U.S. Attorney Gwendolyn Carroll is handling prosecution.
