A Gallatin, Missouri, man whose family farming operation is the setting of a reality TV show pleaded guilty in federal court 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 in Kansas City, Missouri, to a federal information that charges him with one count of federal crop insurance fraud. By pleading guilty, 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 the 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 and 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 underreported 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.
