LINCOLN, Neb. (DTN) -- Reality television star Steve A. McBee and two of his sons, Cole and Jesse, motioned a federal court to dismiss a lawsuit alleging they hid assets to avoid paying court-ordered restitution for crop insurance fraud.

Attorneys argue the trusts for the two sons were created more than a decade before a transfer of assets was made in 2024 and were part of established practice of the trusts.

The U.S. government filed the lawsuit in December 2025 after Steve A. McBee was sentenced to serve two years in federal prison after pleading guilty to crop insurance fraud. The Gallatin, Missouri, farmer and star of "The McBee Dynasty: Real American Cowboys," was ordered to pay about $4 million in restitution to USDA as well.

The new federal lawsuit filed in the U.S. District Court for the Western District of Missouri alleges Steve McBee made fraudulent business transfers to his sons to avoid certain assets from being seized.

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.

The new motion filed this week alleges the government's lawsuit failed to meet fraud pleading requirements and includes critical factual omissions about the trusts established.

The complaint alleges McBee transferred the assets after learning of the U.S. Department of Justice investigation. McBee's attorneys, however, said this week that both trusts were established long before the investigation in December 2012.

McBee said key facts needed to establish fraud are missing from the complaint. That includes that he was insolvent at the time of the transfers, believed he could not pay his debts, received notice of any specific amount owed, attempted to conceal assets and that the asset transfers departed from his established estate planning pattern.

"These were gifts to inheritance trusts for the debtor's children -- trusts established in December 2012, over a decade before the transfers," the motion said.

"The absence of consideration is inherent in a gift; it does not, standing alone, establish fraud. When the government's unsupported and conclusory allegations are stripped from the complaint, all that's left is the 'mere possibility' that the transfers were fraudulent. That does not satisfy the rigorous demands for pleading fraud under (federal law). It's tilting at windmills."

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

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 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:

"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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