July 2025:
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.
October 2024:
A federal grand jury has indicted two men from Lead, South Dakota, for illegal possession of machine guns.
Ray Steele, age 62, was indicted in May of 2024 for Possession of a Firearm by a Prohibited Person and Unlawful Possession of a Machine Gun. He appeared before U.S. Magistrate Judge Daneta Wollmann on August 7, 2024, and pleaded not guilty to the Indictment.
John Sitar, age 43, was indicted in September of 2024 for Unlawful Possession of a Machine Gun and Possession of Unregistered Firearm. He appeared before U.S. Magistrate Judge Daneta Wollmann on September 23, 2024, and pleaded not guilty to the Indictment.
In May of 2024, search warrants were executed at the residences of Steele and Sitar. Law enforcement found seven firearms, thousands of ammunition rounds, hundreds of ammunition components, and six machine gun conversation devices in Steele’s residence. Steele is a previously convicted felon who is prohibited from possessing firearms. Sitar was found to possess a machine gun conversion device, as well as a short-barrel rifle which was not registered to him in the National Firearms Registration and Transfer Record, as required by law.
“Machine gun conversion devices convert semi-automatic firearms into highly lethal and illegal machine guns,” said Alison J. Ramsdell, U.S. Attorney for the District of South Dakota. “The use of such devices presents a grave threat to both the public and law enforcement.”
The maximum penalty for Steele upon conviction is up to 15 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered. The maximum penalty for Sitar upon conviction is up to 10 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely an accusation and Steele and Sitar are presumed innocent until and unless proven guilty.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The investigations are being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Lead Police Department. Assistant U.S. Attorney Benjamin Patterson is prosecuting the cases.
Steele was remanded to the custody of the U.S. Marshals Service pending his trial, which is scheduled for December 17, 2024. Sitar was released on bond pending his trial, which has not been scheduled yet.
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