Two Perry County Men Sentenced for $5.7 Million Investment Fraud Scheme

Perry Co., Mo. (KFMO) - Two Missouri men have been sentenced to more than 12 years in federal prison for running a nearly 20-year Ponzi scheme that defrauded at least 99 victims out of $5.7 million.

U.S. District Judge Stephen Limbaugh Jr. sentenced 78-year-old James Johnson to 188 months and 69-year-old Darrell Niswonger to 150 months. Both were ordered to repay victims. Prosecutors say Johnson and Niswonger operated Johnson & Niswonger Financial Resources in Perryville, where they promised clients safe investments in municipal bonds. Instead, they used the money to fund lavish lifestyles and make payments to earlier investors to hide mounting losses.

Victims included friends, relatives, neighbors and even a cemetery preservation fund in Ste. Genevieve County. Many reported losing retirement savings, inheritances and proceeds from home and farm sales.

Both men pleaded guilty in August to federal fraud charges. They also agreed to forfeit more than $400,000 in assets, including the proceeds from Johnson’s home and a 2019 Audi.

The FBI and U.S. Postal Inspection Service investigated the case.