Identical Twins Who Moonlighted as Golf Tee-Time Brokers Charged with Failing to Report More Than $1.1 Million in Income to IRS

LOS ANGELES - Two identical twin brothers and MRI technicians have been arrested on a 10-count federal grand jury indictment charging them with deliberately failing to report to the IRS more than $1.1 million in income, including money they made from running a golf tee-time brokering business on the side, the Justice Department announced today.

Se Youn "Steve" Kim, 41, of Buena Park, is charged with two counts of tax evasion, one count of making and subscribing to a false tax document, and two counts of willful failure to pay tax.

Hee Youn "Ted" Kim, 41, of Pomona, is charged with two counts of tax evasion, in addition to three counts of willful failure to pay tax.

The Kim brothers were arrested Thursday morning and were arraigned late Thursday afternoon in United States District Court in Los Angeles. Both defendants pleaded not guilty, and a November 4 trial date was scheduled. A federal magistrate ordered both defendants released on $20,000 bond.

According to the indictment that was unsealed Thursday, between 2021 and 2023, the Kim brothers operated a golf tee time brokering business in which they reserved golf tee times online, including at public golf courses, and resold them to members of the public for a fee, frequently in violation of municipal regulations. The brothers marketed, solicited, and communicated with their customers through various social medial platforms, including KakaoTalk, an instant messaging application.

As part of their business, the brothers reserved thousands of tee times for resale at numerous golf courses nationwide, including at least 17 different public courses across Southern California. The brothers created a monopoly of Los Angeles and Orange County area golf course tee times by securing the most sought-after early morning slots, often within seconds of their release to the public. As a result, the brothers made it more difficult and more expensive for members of the public to reserve tee times at these courses without paying them an additional booking fee, particularly during the COVID-19 pandemic.

The Kim brothers often directed their golf tee time clients to pay these reservation fees to their personal accounts, including Venmo and Zelle accounts, and then transferred those funds into their personal bank accounts.

In June 2022, Steve Kim incorporated Birdie Tour Inc., a Buena Park-based company, and served as its CEO and chief financial officer, while Ted Kim was its secretary. The brothers obtained an employer identification number from the IRS and opened a bank account in the business's name.

In total, between 2021 and 2023, the Kim brothers earned nearly $700,000 from their tee time brokering business. Despite earning substantial income and owing taxes from this business, and from their job as MRI technicians, the brothers willfully failed to report a combined total of more than $1.1 million in income to the IRS for tax years 2022 and 2023.

The Kim brothers also accumulated substantial tax liabilities by failing to pay taxes assessed. Rather than using their available funds to pay off their outstanding tax balance, the Kim brothers spent their money on a timeshare in Hawaii, luxury vehicles, and high-end retail purchases from brands such as Chanel, Cartier, Louis Vuitton, and Prada, among other things.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

If convicted, Steve Kim and Ted Kim would face a statutory maximum sentence of five years in federal prison for each tax evasion count, and up to one year in prison for each count of willful failure to pay tax. If convicted, Steve Kim faces a statutory maximum sentence of three years in federal prison for making and subscribing to a false tax document.

IRS Criminal Investigation is investigating this matter.

Assistant United States Attorney Solomon Kim of the Major Frauds Section is prosecuting this case.