James M. Alexander, a 63-year-old resident of Gillette, Wyoming, has been sentenced to one year in federal prison followed by two years of supervised release for theft of government property and filing a false income tax return. U.S. District Court Judge Alan B. Johnson handed down the sentence on June 17 in Cheyenne, also ordering Alexander to pay restitution amounting to $409,422.28 along with a special assessment fee of $200. The sentence is set to begin on August 4, 2025.
Court records reveal that Alexander had sustained an injury while working at BNSF Railway and subsequently applied for total and permanent disability benefits from the U.S. Railroad Retirement Board (RRB). The RRB provides disability benefits to railroad employees who are unable to work due to their disabilities resulting from their employment in the railroad industry. Beneficiaries must report any income or improvement in their condition that could affect their eligibility for continued benefits.
Between January 1, 2016, and December 2024, Alexander failed to inform the RRB about his ability to work or the substantial income he earned through construction and remodeling work. Specifically, he did not disclose earnings totaling $330,830 from a construction company between January 2016 and August 2023.
In addition to these actions, Alexander admitted to submitting false tax returns that understated his actual income from various sources including the construction company.
Acting United States Attorney Stephanie Sprecher stated: “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 commented: “This sentence shows our dedication to holding accountable those who defraud government programs and disregard their tax obligations.” She emphasized ongoing collaboration with federal partners: “As demonstrated, our agents will continue to partner with the U.S.Attorney’s Office and our federal law enforcement partners to diligently fight the abuses of government programs and hold those responsible for deliberately hiding their income.”
The investigation was conducted by both the RRB-Office of Inspector General and IRS-Criminal Investigations.
