ST. LOUIS – Two Missouri men have pleaded guilty to operating a long-running Ponzi scheme that defrauded more than 90 victims out of at least $3 million.

On Friday, James “Jim” Johnson, 77, and Darrell Niswonger, 68, each pleaded guilty to one count each of wire fraud, securities fraud and investment adviser fraud. Niswonger also pleaded guilty to four additional counts of wire fraud.

Both men admitted to running a Ponzi scheme that began in 2006. They told their clients their money was being invested in municipal bonds, when they were really using that money to fund personal expenses and luxurious lifestyles.

Johnson and Niswonger spent investors’ funds on country club memberships, sponsored golf tournaments, hundreds of thousands of dollars in improvements to Johnson’s home, educational expenses for one of Niswonger’s relatives and other personal expenses, according to their plea agreements.

Operating out of a storefront in Perryville, Missouri as Johnson & Niswonger Financial Resources LLC since 2002, the pair initially offered clients annuities. By 2006, however, the firm was experiencing cash flow problems, and the two began marketing what the described as tax-free, risk-free municipal bonds.

As part of their plea deals, both admitted they used client money to keep their business and themselves afloat financially, rather than investing it in legitimate securities as they claimed.

Over nearly two decades, they took in millions of dollars from friends, relatives and neighbors. Many victims encouraged others to invest, based on Niswonger and Johnson’s false claims of success. Victims have since lost inheritances, the proceeds of selling their homes and farms, and their life savings.

When Johnson & Niswonger shut down on April 22, 2025, they owed investors more than $3 million but had less than $22,000 in a bank account where client funds were deposited.

“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,” said U.S. Attorney Thomas C. Albus via a news release.

As of their plea agreements, Johnson and Niswonger agreed to forfeit Johnson’s home, a 2019 Audi A5 Premium as well as $61,734 in two bank accounts and $10,302 in a brokerage account

Niswonger and Johnson are scheduled to be sentenced on November 13. Both could face up to several decades behind bars.