Man sentenced to federal prison for receiving permanent disability benefits when he was able to work
GILLETTE (WNE) — James M. Alexander, 63, of Gillette was sentenced to 12 months in federal prison followed by two years of supervised release for theft of government property — disability benefits, specifically — and filing a false income tax return.
In addition, the court ordered restitution of $409,422.28.
U.S. District Court Judge Alan B. Johnson imposed the sentence on June 17 in Cheyenne, and he ordered Alexander to begin serving the 12-month sentence on Aug. 4.
The crime was investigated by the U.S. Railroad Retirement Board Office of Inspector General and the IRS-Criminal Investigations.
According to court records, Alexander applied for and received total and permanent disability benefits from the U.S. Railroad Retirement Board following an injury he suffered on his job at BNSF Railway. The U.S. Railroad Retirement Board 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, Alexander agreed to inform the board if he earned any income or his condition improved, as this would impact his ability to continue receiving monthly disability benefits.
From Jan. 1, 2016, to December 2024, Alexander failed to report to the board that his disability did not prevent him from working. He also did not report that he had received substantial income for construction and remodeling work he performed. For example, he failed to report that he earned $330,830 from a construction company from January 2016 to August 2023.
"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,” said Acting United States Attorney Stephanie Sprecher in a press release.
This story was published on June 25, 2025.