Local TV reality star McBee pleads guilty to crop insurance fraud

A Gallatin man whose family farming operation is the setting of a reality TV show pleaded guilty in federal court last week to a multi-million dollar fraud scheme involving federal crop insurance benefits he was not entitled to receive.

Steve A. McBee, 52, waived his right to a grand jury and pleaded guilty before U.S. District Judge Stephen R. Bough to a federal information that charges him with one count of federal crop insurance fraud. McBee, the owner of McBee Farming Operations, stars in the reality TV series "The McBee Dynasty: Real American Cowboys" streaming on Peacock.

McBee admitted that he engaged in fraudulent activity from 2018 to 2020 that caused an economic loss to the U.S. Department of Agriculture. Under the terms of plea agreement, McBee must pay restitution as determined by the court. The total loss claimed by the government is $4, 022, 123. Additionally, McBee must forfeit to the government $3, 158, 923.

McBee admitted that he made a false report to Rain & Hail, a company reinsured by the Federal Crop Insurance Corporation. McBee submitted fraudulent documents to Rain and Hail that underreported his total 2018 corn crop by approximately 674, 812 bushels and under reported his total 2018 soybean crop by approximately 155, 833 bushels. As a result of these false reports, McBee received $2, 605, 943 in federal crop insurance benefits to which he was not entitled, as well as $552, 980 in federal crop insurance premium subsidies to which he was not entitled, for a total of $3, 158, 923.

McBee admitted to the court that his farming operation sold more than 1.2 million bushels of corn and nearly 416, 000 bushels of soybeans to anoth- er party in 2018. However, McBee's crop insurance records reported that his farming operations produced only 340, 476 bushels of corn and 190, 171 bushels of soybeans.

McBee also admitted he committed additional fraud in 2019 and 2020. McBee provided false information to Rain & Hail to obtain insurance for the McBee farming operation's 2019 soybean crop by misrepresenting that soybeans were the first crop in certain fields when wheat had already been harvested from those fields. The Rain & Hail crop insurance policy only allowed insurance coverage on the first crop planted on a piece of land during a given crop year. As a result of the double cropping during the 2019 crop year, McBee was paid federal crop insurance benefits to which he was not entitled.

McBee also provided false information when he obtained crop insurance through NAU Country Insurance in 2020. McBee's farming operation planted corn after the last planting date in 2020, which made the crop ineligible for insurance. McBee provided false plant dates on crop insurance documents to NAU Country Insurance. As a result, McBee received federal crop insurance benefits to which he was not entitled. Under federal statutes, McBee is subject to a sentence of up to 30 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office. This case is being prosecuted by Special Assistant U.S. Attorney Bradley Cooper. It was investigated by the U.S. Department of Agriculture, Office of Inspector General.