Twin Brothers Plead Guilty to Tax Crimes Linked to Golf Tee-Time Business
Twin brothers Se Youn “Steve” Kim and Hee Youn “Ted” Kim, operators of a controversial tee-time reservation business in Southern California, pleaded guilty to federal tax crimes. This plea came as part of a court hearing in downtown Los Angeles. Steve Kim admitted to filing a false tax return, and Ted Kim pleaded guilty to tax evasion.
Their plea agreements revealed a combined income of over $1.3 million from the tee-time business and other sources, which was unreported. Despite this, the agreements do not fully detail the income from the golf reservation operation. Specifically, Steve Kim acknowledged omitting more than $27,500 from his 2021 income tax return.
The brothers, who also falsely claimed exemptions from federal income-tax withholding while employed as MRI technicians, are required to pay a minimum of $581,616 in restitution. This amount addresses tax losses from years preceding the start of their tee-time business. They remain free on bond and will be sentenced on January 12. Steve Kim faces up to three years in federal prison, while Ted Kim could serve up to five years. Neither the brothers nor their legal representatives have commented following their guilty pleas.
Federal prosecutors previously accused the Kims of creating a monopoly over Southern California golf courses. They allegedly did this by swiftly reserving coveted early morning tee times almost immediately after they were made available to the public.
The guilty pleas came shortly after California Governor Gavin Newsom signed a law prohibiting third-party brokers from advertising, selling, or transferring tee-time reservations at public golf courses without the course operator’s consent. This legislative action was a response to mounting complaints about brokers securing and reselling reservations at Los Angeles municipal courses. These slots were often advertised through social media and apps like the Korean messaging service KakaoTalk.
Starting in 2021, the Kim brothers reserved and resold thousands of tee times across various Los Angeles-area golf courses. They charged fees for these reservations. The indictment claimed their brokering business generated nearly $700,000 from 2021 to 2023. However, the plea agreements do not indicate how much unreported income resulted from this specific operation.
The widespread practice of tee-time brokering has frustrated many local golfers who struggle to book slots at public courses in Los Angeles. In a 2024 interview, Ted Kim stated he used up to five devices and enlisted the help of unspecified friends to secure tee times. He insisted that he operated on an equal playing field as other golfers and denied using bots to exploit the system. “I’m booking myself,” Ted Kim told The Times. “I’m not doing anything illegal.”