LOS ANGELES – Two Southern California brothers, operating as MRI technicians by day and allegedly illegal golf tee-time brokers by night, are facing federal charges for dodging over $1.1 million in taxes, the Department of Justice announced Thursday. The identical twins, Se Youn “Steve” Kim, 41, of Buena Park, and Hee Youn “Ted” Kim, 41, of Pomona, are accused of deliberately failing to report income earned from their side hustle – a lucrative, and reportedly illicit, golf tee-time brokering operation.
The indictment alleges that between 2021 and 2023, the Kim brothers built a business around snatching up coveted golf tee times online, including at public courses, and reselling them at a hefty profit. They reportedly used social media platforms like KakaoTalk to market their services, securing early morning slots at courses across Southern California – often within seconds of release – and creating a virtual monopoly in the Los Angeles and Orange County areas. This practice allegedly made it harder, and more expensive, for the public to book tee times without paying a premium to the Kim brothers, particularly during the height of the COVID-19 pandemic.
Federal prosecutors claim the brothers funneled payments for these reservations into personal Venmo and Zelle accounts before transferring the funds into their own bank accounts. In June 2022, Steve Kim incorporated Birdie Tour Inc., based in Buena Park, and took on the roles of CEO and CFO, while Ted Kim served as secretary. Despite obtaining an Employer Identification Number and opening a business bank account, the brothers allegedly failed to report the nearly $700,000 earned from the tee time business, alongside income from their legitimate jobs as MRI technicians. The total unreported income for tax years 2022 and 2023 allegedly exceeds $1.1 million.
But it wasn’t just the income they failed to report; it was how they spent it. Instead of using their funds to pay accumulating tax liabilities, the indictment states the Kim brothers splurged on a Hawaiian timeshare, luxury vehicles, and high-end retail purchases from brands like Chanel, Cartier, Louis Vuitton, and Prada. The feds paint a picture of blatant disregard for their financial obligations, prioritizing lavish spending over fulfilling their civic duty.
Both Se Youn “Steve” Kim and Hee Youn “Ted” Kim were arrested Thursday morning and arraigned later that day in United States District Court in Los Angeles, entering not guilty pleas. A trial date is set for November 4. A federal magistrate released both defendants on $20,000 bond. Steve Kim 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 faces two counts of tax evasion and three counts of willful failure to pay tax.
If convicted, each tax evasion count carries a statutory maximum sentence of five years in federal prison, and each count of willful failure to pay tax carries a maximum sentence of one year. Steve Kim also faces up to three years in prison for falsifying tax documents. The investigation was conducted by IRS Criminal Investigation, and the case is being prosecuted by Assistant United States Attorney Solomon Kim of the Major Frauds Section. An indictment is merely an allegation, and both defendants are presumed innocent until proven guilty beyond a reasonable doubt.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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