California Twin Brothers Charged with Tax Evasion in Golf Tee Time Brokering Scheme
A federal grand jury has charged two brothers, Se Youn “Steve” Kim and Hee Youn “Ted” Kim, with tax evasion on over $1.1 million in income from a years-long scheme selling tee times on local golf courses in Southern California. The brothers, both 41 years old, were arrested on Thursday morning and pleaded not guilty to the charges. According to the indictment, the Kim brothers’ tee time brokering business secured thousands of reservation slots at golf courses across the U.S., including at least 17 public golf courses in Southern California, between 2021 and 2023.
Monopolizing Tee Times
The brothers allegedly used online platforms, including KakaoTalk, a Korean instant messaging app, to reach their customers and quickly nab popular early morning tee times almost immediately after they were available to the public. This created a monopoly on Southern California golf courses, frustrating local golfers who were unable to secure tee times on public courses. The prevalence of tee-time brokering was previously reported, with scores of local golfers sharing their frustrations over the issue.
Justice for Local Golfers
Joseph Lee, a vocal critic of tee time brokers, welcomed the charges, stating, “Finally, it’s justice. For a long time, L.A. golfers have been frustrated by these illegal tee time brokers and their resale market. Authorities have finally recognized the seriousness of the issue.” Lee had helped collect evidence and met with federal prosecutors during their investigation of the Kim brothers.
Financial Irregularities
Federal prosecutors alleged that the brothers had customers pay reservation fees to their personal accounts via Venmo, Zelle, and other applications, netting them nearly $700,000 between 2021 and 2023. The brothers, who also worked as MRI technicians, are accused of willfully failing to report a combined $1.1 million in income to the Internal Revenue Service for 2022 and 2023. They are also accused of failing to pay taxes that the IRS had assessed, instead making lavish purchases at luxury brands such as Chanel, Cartier, Prada, and Louis Vuitton.
Contradictory Claims
In a previous interview with The Times, Ted Kim claimed that he used up to five devices and relied on friends to secure tee times, stating that he was not using bots to game the system and was not doing anything illegal. He framed his business as a way of helping elderly Korean golfers without tech savvy to navigate the online golf reservation system, claiming to profit only a couple thousand dollars a month.
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