2 Southern California men allegedly running golf tee-time scheme plead guilty to tax evasion
Two men who allegedly ran a golf tee-time brokering business as a side hustle pleaded guilty to deliberately failing to report more than $1.3 million in income, according to the U.S. Department of Justice.
Twin brothers, Se Youn "Steve" Kim, 42, of Buena Park, and Hee Youn "Ted" Kim, 42, of Pomona, reserved thousands of golf tee times at golf courses in Los Angeles and Orange counties and resold them for a fee to the public, prosecutors said.
Reservation fees from their tee time business were directed to be deposited into their personal financial accounts even after they formed a corporate entity, assigned an Employer Identification Number, and opened a business account.
For the tax years 2021 through 2023, Steve Kim received approximately $810,919 in income. Ted Kim received approximately $496,998 in income for the tax years 2022 and 2023.
According to prosecutors, Steve Kim admitted that his 2021 federal income tax return omitted approximately $27,510 in income he earned from the tee-time brokering business he ran with his brother. His tax return for that year further omitted income from capital gains, unemployment compensation, and early retirement distributions in the amounts of approximately $4,747, $8,723, and $8,635, respectively.
The brothers were also hired as MRI technicians and falsely claimed to their employers that they were exempt from federal income tax withholdings.
For the tax years 2022 and 2023, Steve Kim willfully evaded the assessment of income tax in the amount of $155,021, while Ted Kim willfully evaded the assessment of income tax in the amount of $97,354, prosecutors said.
Steve Kim also admitted to failing to pay income tax due for the tax years 2012 through 2021, about $221,004 in payments, interest and penalties owed to the IRS.
Both men are scheduled for sentencing hearings in January 2027. Steve Kim will face a statutory maximum sentence of three years in federal prison and Ted Kim will face a statutory maximum sentence of five years in federal prison.
In 2024, Los Angeles County cracked down on golf tee-time brokers at its public courses by requiring non-refundable reservation deposits. Earlier that year, a group of golfers sued the city of Los Angeles, claiming that officials weren't doing enough to stop black-market tee times.
