Billings, Montana – A Billings man who was legally barred from owning or possessing firearms due to a prior commitment in a mental health institution has been sentenced to federal prison after investigators uncovered a long pattern of illegal gun purchases and possession. Ryan David Schreder, 45, was sentenced to 46 months in prison, followed by three years of supervised release, for making false statements to obtain firearms and for being a prohibited person in possession of firearms, according to Kurt Alme, U.S. Attorney for the District of Montana.
Schreder pleaded guilty in August 2025 to four counts of making a false statement in the acquisition of a firearm and one count of being a prohibited person in possession of a firearm. The sentence was handed down by Susan P. Watters, who presided over the case.
Investigation revealed repeated false statements and large firearm cache
Court records show that law enforcement began investigating Schreder after receiving repeated reports of escalating behavior that raised serious concerns. On October 10, 2024, the Yellowstone County Sheriff’s Office obtained and executed a search warrant at Schreder’s residence in Billings.
During the search, deputies recovered 23 firearms and 1,176 rounds of assorted ammunition, including large-capacity magazines. The discovery confirmed that Schreder was in possession of weapons despite being legally prohibited from doing so because of a previous commitment to a mental institution.
A deeper investigation by the Bureau of Alcohol Tobacco Firearms and Explosives revealed that between February 11, 2022, and June 18, 2024, Schreder purchased firearms on at least 18 separate occasions. Those purchases were made through four different federally licensed firearms dealers in Billings.
Each of the four counts related to false statements stemmed from transactions at those dealers. To complete each purchase, Schreder was required to fill out ATF Form 4473, also known as the “Firearms Transaction Record.”
On that form, Schreder knowingly answered “no” to the question: “Have you ever been adjudicated mentally defective OR have you ever been committed to a mental institution.” If a buyer answers “yes” to that question, the law requires a licensed firearms dealer to stop the sale immediately.
Court documents noted that firearms dealers have no independent way to verify whether a buyer’s answer is truthful in Montana because involuntary mental health commitments are not recorded on criminal history reports.
Investigators also confirmed that at least three firearms Schreder purchased were later recovered by law enforcement during investigations that were unrelated to him, raising additional public safety concerns.
The case was prosecuted by Assistant U.S. Attorney Paul Vestal. The investigation was jointly conducted by the ATF and the Yellowstone County Sheriff’s Office.
Federal officials said the sentence reflects the seriousness of repeatedly violating firearms laws and making false statements to bypass safeguards designed to protect the public.
