James M. Alexander, a 63-year-old resident of Gillette, Wyoming, has been sentenced to 12 months in federal prison for defrauding the U.S. Government. The sentence includes two years of supervised release following his prison term. Alexander was convicted of theft of government property and filing a false income tax return. In addition to his sentence, he has been ordered to pay restitution amounting to $409,422.28 and a special assessment fee of $200.
U.S. District Court Judge Alan B. Johnson handed down the sentence on June 17 in Cheyenne, mandating that Alexander begin serving his sentence on August 4, 2025.
Court records indicate that Alexander applied for and received total and permanent disability benefits from the U.S. Railroad Retirement Board (RRB) due to an injury sustained while working at BNSF Railway. These benefits are intended for railroad employees who are unable to work due to permanent disabilities resulting from their employment with the railroad.
Despite receiving these benefits, Alexander failed to notify the RRB about his ability to work or any income he earned between January 1, 2016, and December 2024. Specifically, he did not report earnings totaling $330,830 from construction and remodeling work performed from January 2016 to August 2023.
Alexander also admitted to filing false tax returns that underreported his actual income during this period.
Acting United States Attorney Stephanie Sprecher commented on the case: “Our office remains steadfast in the pursuit of those who steal from federal programs and deprive the government of vital income for public programs. The defendant’s actions not only defrauded the RRB out of much needed revenue to assist those who are truly disabled, but he also cheated his fellow citizens who pay their fair share of taxes.”
Amanda Prestegard, Special Agent in Charge at IRS-CI Denver Field Office added: “This sentence shows our dedication to holding accountable those who defraud government programs and disregard their tax obligations.”
The investigation was conducted by the RRB-Office of Inspector General and IRS-Criminal Investigations.
