Gillette man sentenced for defrauding U.S. Government

James M. Alexander, 63, of Gillette, Wyoming, was sentenced to 12 months in federal prison followed by two years of supervised release for theft of government property (disability benefits) and filing a false income tax return. In addition, the court ordered restitution of $409,422.28 and a special assessment of $200. U.S. District Court Judge Alan B. Johnson imposed the sentence on June 17 in Cheyenne. Judge Johnson ordered the Defendant to begin serving the 12-month sentence on August 4, 2025. 

According to court records, as a result of an injury suffered on his job at BNSF Railway, the Defendant applied for and received total and permanent disability benefits from the U.S. Railroad Retirement Board (“RRB”). The RRB administers disability benefits to railroad employees who were totally and permanently disabled and unable to work in any kind of regular job as a result of their work for the railroad. As a condition of receiving monthly disability benefits, the Defendant agreed to inform the RRB if he earned any income or his condition improved, as this would impact his ability to continue receiving monthly disability benefits. 

From January 1, 2016, to December 2024, the Defendant failed to report to RRB that his disability did not prevent him from working and/or that he had received substantial income for construction/remodeling work he performed. For example, he failed to report to the RRB income he earned from a construction company from January 2016 to August 2023, totaling $330,830. 

The defendant further admitted to filing false returns that underreported his true income, including the income he received from a construction company. 

Acting United States Attorney Stephanie Sprecher said, “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."