The McBee Dynasty’s Steve McBee, who is currently incarcerated, was shut down in his attempt to dismiss a lawsuit alleging he fraudulently transferred property to his sons to avoid a huge debt to the government … TMZ has learned.

According to court docs obtained by TMZ, a federal judge denied Steve’s effort to get the civil suit brought by the U.S. government against him tossed out of court.

In this case, the government claimed that Steve was notified of an ongoing federal investigation of potential crop insurance fraud involving various farming operations owned by Steve in June 2023.

In November 2024, Steve pleaded guilty to one count of making a false statement in connection with federal crop insurance. As part of his plea deal, he admitted to receiving millions in federal benefits to which he was not entitled with losses to the United States totaling around $4 million. Steve was ordered to pay $4 million in restitution and sentenced to 24 months in prison.

In his attempt to get the related civil suit dismissed, Steve claimed the government had no case, saying the trusts for his sons had been created long before the government investigation and that he wasn’t insolvent at the time of the transfers.