McBee Freed More Than 1 Year Early

LINCOLN, Neb. (DTN) -- Ag reality television star Steven A. McBee Sr. has been released from federal prison more than one year ahead of schedule, according to several published press reports and a social media posting by family members.

McBee, the star of "The McBee Dynasty: Real American Cowboys," pleaded guilty to crop insurance fraud and was sentenced to two years in prison at a federal prison in South Dakota.

McBee reportedly was released on Sept. 11 and was pictured on the McBee Farm Cattle Co. Instagram page holding a baby with the words, "Steve is outta prison. So blessed to have the family back together. Dad and Tate have officially got to meet now." Tate is his newest granddaughter.

Yahoo News reported that McBee was released from prison as part of a program that allows some defendants to complete the rest of a sentence under home confinement and supervised release.

In all, McBee was ordered to pay $4 million in restitution to the USDA's Risk Management Agency for crop insurance fraud. He previously agreed to pay about $3.2 million in a money judgment that represents his gain from the fraud. In addition, the court imposed two years of supervised release once the prison sentence is complete.

The Gallatin, Missouri, farmer and his sons Cole and Jesse are scheduled to stand trial on May 3, 2027, on allegations that Steve A. McBee transferred assets to his sons to avoid paying a court judgment in his crop insurance fraud case.

U.S. attorneys contend McBee transferred assets to the trusts for his sons Cole and Jesse to avoid surrendering the assets. The family has argued in court filings that the trusts were created more than a decade before a transfer of assets was made in 2014 and that the transfer was an established practice of the trusts.

The U.S. government filed the lawsuit alleging Steve A. McBee became aware of the crop insurance fraud investigation in June 2023, and his attorneys met with U.S. attorneys in December 2023.

The complaint filed by the government said that on Jan. 7, 2024, McBee transferred the assets "anticipating a criminal conviction."

McBee transferred his ownership interests in three companies to his sons Jesse and Cole.

That includes a 39% interest in McBee Properties L.C., a 99% interest in Rock Bluff Development LLC and a 99% interest in S&K Enterprises LLC. According to the lawsuit, Steve McBee Sr. split those interests evenly between Jesse and Cole.

The federal government alleges the transfers occurred while McBee was under federal investigation, and he received no payment in exchange.

The federal government's lawsuit includes six claims for fraudulent conveyance under both federal and Missouri state law. The U.S. argues the transfers were made with actual intent to defraud the federal government, and the transfers were made without equivalent value when McBee knew he would face debts he couldn't pay.

In addition, the government asked the court to file an injunction preventing anyone from selling, mortgaging or disposing of the business assets.

The U.S. is also seeking money judgments against Jesse McBee and Cole McBee for the value of the transferred interests.

As part of Steve McBee Sr.'s plea agreement, the U.S. government agreed not to charge anyone in his family with crop insurance fraud.

Read more on DTN:

"US: McBee Hid Family Assets From Feds," https://www.dtnpf.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

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