US: McBee Hid Family Assets From Feds

LINCOLN, Neb. (DTN) -- Reality television star Steve A. McBee and two of his sons, Cole and Jesse, allegedly hid assets to avoid paying court-ordered restitution for crop insurance fraud, the U.S. government alleges in a new federal lawsuit filed in the U.S. District Court for the District of Western Missouri.

Steve A. McBee, a Gallatin, Missouri, farmer and star of the "The McBee Dynasty: Real American Cowboys," is serving two years in federal prison after pleading guilty to crop insurance fraud. He was ordered to pay about $4 million in restitution to USDA.

In a new federal lawsuit, prosecutors allege Steve McBee 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 are asking for the court to nullify the transfers of interest and to re-adjust 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 alleges the transfers occurred while McBee was under federal investigation, and he received no payment in exchange.

"Furthermore, debtor swore that he had made no transfer of assets or property for the purpose of evading financial obligations created by this agreement," the lawsuit said, "evading obligations that may be imposed by the court; or hindering efforts of the USAO to enforce such financial obligations. Moreover, debtor 'promised that he will make no such transfers in the future.'"

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 has asked the court to file an injunction preventing anyone from selling, mortgaging or disposing of the business assets. The U.S. also is seeking money judgements 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 to not charge anyone in his family with crop insurance fraud.

Read more on DTN:

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

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

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