Show-Me State Times

Two Missouri men have pleaded guilty to operating a Ponzi scheme that lasted nearly two decades and resulted in losses of at least $3 million for more than 90 victims. James “Jim” Johnson, 77, and Darrell Niswonger, 68, entered their pleas on Friday in U.S. District Court in Cape Girardeau. 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, the scheme began as early as 2006 while the men were running Johnson & Niswonger Financial Resources LLC out of Perryville, Missouri. Although they initially offered clients annuities, financial troubles led them to offer what they described as tax-free and risk-free municipal bonds. However, the funds were used for personal expenses including country club memberships, home improvements for Johnson, educational costs for a relative of Niswonger, and salaries for themselves.

The pair told clients they would receive a guaranteed five percent return on investments labeled as “Five Year Interest Bearing Note,” “Investment Note,” or “Five Year Interest Bearing Investment.” They persuaded some investors to move money from legitimate investments into these fraudulent offerings.

Johnson and Niswonger discouraged withdrawals by investors because there was not enough money available to pay them back. In one instance, an investor who requested a withdrawal discovered his funds had been taken from a legitimate annuity instead of the purported bond investment. Another family member was told that no money could be withdrawn until the bonds matured after an investor’s death.

Over almost 20 years, millions were collected from friends, relatives, and neighbors—many of whom encouraged others to invest based on false claims about investment success. Victims lost inheritances and life savings; when the business closed in April 2025 it owed over $3 million but held less than $22,000 in its 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.”

Sentencing is scheduled for November 13; wire fraud charges carry up to 20 years imprisonment and fines up to $250,000 per count; securities fraud carries up to 20 years imprisonment with up to $5 million in fines; investment adviser fraud carries up to five years imprisonment with up to $10,000 in fines.

As part of their plea agreements both men have agreed to forfeit assets including Johnson’s home—a 2019 Audi A5 Premium—along with over $61,000 across two bank accounts plus just over $10,000 from a brokerage account.

The case was investigated by the FBI and U.S. Postal Inspection Service; prosecution is being handled by Assistant U.S. Attorney Gwendolyn Carroll.