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Gillette Man Sentenced for Stealing $409K in Disability Benefits
A 63-year-old Gillette man has been sentenced to 12 months in federal prison for stealing $409,422.28 in disability benefits from the U.S. government. James M. Alexander, of Gillette, Wyoming, was also ordered to pay a special assessment of $200 and serve two years of supervised release after his prison term.
U.S. District Court Judge Alan B. Johnson imposed the sentence on June 17 in Cheyenne, ordering Alexander to begin serving his 12-month sentence on August 4, 2025. According to court records, Alexander applied for and received total and permanent disability benefits from the U.S. Railroad Retirement Board (RRB) after suffering an injury on the job at BNSF Railway.
As a condition of receiving monthly disability benefits, Alexander agreed to inform the RRB if he earned any income or his condition improved. However, from January 1, 2016, to December 2024, Alexander failed to report that his disability did not prevent him from working and/or that he had received substantial income from construction and remodeling work.
According to court records, Alexander failed to report income he earned from a construction company from January 2016 to August 2023, totaling $330,830. He also admitted to filing false tax returns that underreported his true income, including the income he received from the 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.”
Amanda Prestegard, Special Agent in Charge of the 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 RRB-Office of Inspector General and IRS-Criminal Investigations investigated the crime. Case No. 25-CR-00035.
Key Facts
- State: Wyoming
- Agency: DOJ USAO
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: Official Source ↗
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