James M. Alexander, a 63-year-old resident of Gillette, Wyoming, has been sentenced to 12 months in federal prison followed by two years of supervised release for theft of government property and filing a false income tax return. The court also ordered restitution amounting to $409,422.28 and imposed a special assessment of $200. U.S. District Court Judge Alan B. Johnson delivered the sentence on June 17 in Cheyenne, mandating that Alexander commence his prison term on August 4, 2025.
Court documents reveal that following an injury at his job with BNSF Railway, Alexander applied for and received total and permanent disability benefits from the U.S. Railroad Retirement Board (RRB). These benefits are meant for railroad employees who are completely disabled and unable to work any regular job due to their condition. As part of receiving these benefits, recipients must notify the RRB if they earn any income or if their medical condition improves.
From January 1, 2016, to December 2024, Alexander failed to inform the RRB about his ability to work and substantial income earned through construction and remodeling jobs. Specifically, he did not report earnings from a construction company between January 2016 and August 2023 totaling $330,830.
Alexander also admitted to submitting false tax returns that underreported his actual income from these activities.
Acting United States Attorney Stephanie Sprecher commented: “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. Thanks to the excellent investigative work conducted by our federal partners, he was held accountable for his actions."
Amanda Prestegard, Special Agent in Charge at IRS-CI Denver Field Office stated: “This sentence shows our dedication to holding accountable those who defraud government programs and disregard their tax obligations.” She emphasized ongoing efforts with federal law enforcement partners against such abuses.
The investigation was conducted by the RRB-Office of Inspector General alongside IRS-Criminal Investigations.
Case No. 25-CR-00035
