Lead Man Sentenced to 3½ Years in Federal Prison for Illegally Possessing Machinegun Conversion Devices

RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Lead, South Dakota, man convicted of Unlawful Possession of a Machinegun. The sentencing took place on July 11, 2025.

Ray Steele, 63, was sentenced to three years and five months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.

Steele was indicted for Possession of a Firearm by a Prohibited Person and Unlawful Possession of a Machinegun by a federal grand jury in May 2024. He pleaded guilty on April 21, 2025.

Between late 2020 and May 2024, Steele, a felon prohibited from possessing firearms, had another person purchase firearms for him and was then building various caliber rifles. At the same time, Steele was also illegally manufacturing machinegun conversion devices to convert semi-automatic rifles into fully automatic machineguns. Once manufactured and inserted into a rifle, Steele and others would shoot the fully automatic machineguns. During a search warrant of his residence, law enforcement located six machinegun conversion devices, including one Steele was preparing to ship to an individual in California. Law enforcement also seized numerous firearms belonging to Steele.  

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Lead Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.

Steele was immediately remanded to the custody of the U.S. Marshals Service.