McBee Settlement Nears in Fraud Case

LINCOLN, Neb. (DTN) -- Reality television star Steve A. McBee and two of his sons, Cole and Jesse, are set to settle a lawsuit that was set to go to trial next year that alleged the trio hid assets to avoid paying court-ordered restitution for crop insurance fraud.

A judge in the U.S. District Court for the District of Western Missouri on Wednesday announced the cancellation of a pretrial conference set for April 6, 2027, and the jury trial originally slated for May 3, 2027, citing in a brief text entry to the court docket that the case is moving toward resolution.

"The court has been advised of the parties' intent to settle," Judge Stephen R. Bough said in a case entry.

"As such, it is hereby ordered that the parties file a stipulation of dismissal or a joint status report within 45 days from the date of this order."

Both sides in the case are ordered to file a status report by Dec. 5, 2026.

Steve A. McBee, a Gallatin, Missouri, farmer and star of "The McBee Dynasty: Real American Cowboys," was recently released from federal prison early after pleading guilty to crop insurance fraud. As part of his sentence on crop insurance fraud, McBee was ordered to pay about $4 million in restitution to USDA.

In a federal lawsuit filed after McBee was sentenced, prosecutors alleged that he engaged in fraudulent business transfers to his sons to avoid certain assets from being seized by the feds as part of the sentencing process.

Among several requests for relief asked for in the lawsuit, prosecutors asked the court to nullify the transfers of interest and to readjust the sentence to reflect "actual equity interest."

Here is a timeline of events, according to the lawsuit:

-- In June 2023, Steve McBee was notified about the federal investigation.

-- In December 2023, McBee's attorney met with prosecutors.

-- On Jan. 7, 2024, McBee transferred ownership interests in three family LLCs to his sons.

-- In November 2024, McBee pleaded guilty.

McBee transferred his ownership interests in three companies to his sons Jesse and Cole. That includes 39% interest in McBee Properties L.C.; 99% interest in Rock Bluff Development LLC; and 99% interest in S&K Enterprises LLC. According to the lawsuit, Steve McBee split those interests evenly between Jesse and Cole.

The federal government alleged 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.

"The transfer of the debtor's interest in McBee Properties L.C. to defendants, Jesse McBee and Cole McBee, was made without receiving of reasonably equivalent value in exchange for the transfer, and debtor believed or reasonably should have believed that he would incur debts beyond his ability to pay as they became due," the lawsuit said.

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's plea agreement, the U.S. government agreed not to charge anyone in his family with crop insurance fraud.

Read more on DTN:

"Feds: 'McBee Dynasty' Star Hid Business Assets by Transferring Them to Sons," https://www.dtnpf.com/…

"McBee Sentenced to 2 Years in Prison," https://www.dtnpf.com/…

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

Follow him on social platform X @DTNeeley

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