Twin brothers Se Youn “Steve” Kim and Hee Youn “Ted” Kim pleaded guilty Tuesday to federal tax-related charges connected to a business that reserved and resold thousands of tee times at Southern California golf courses. The hearing took place in downtown Los Angeles, where Steve Kim admitted to filing a false tax return, and Ted Kim pleaded guilty to tax evasion.

According to the plea agreements, the brothers earned more than $1.3 million in combined unreported income from the tee-time reselling enterprise and other sources. Steve Kim specifically acknowledged failing to report over $27,500 in earnings on his 2021 tax return, while both brothers also admitted to falsely claiming exemptions from federal income-tax withholding during their employment as MRI technicians. Prosecutors have called for the brothers to pay at least $581,616 in restitution for unpaid taxes, which also cover periods preceding the start of the tee-time business.

This case comes amid increased scrutiny over so-called “tee-time brokering,” a practice where individuals or groups quickly secure popular early-morning tee times at public golf courses and resell them, often at a premium. Federal prosecutors previously described the Kims’ operation as having effectively created a monopoly on tee times across Southern California golf courses. The brothers reportedly used multiple devices and enlisted the help of friends to reserve these slots, a tactic they defended as competing on equal footing with other golfers and not involving automated bots.

The guilty pleas followed recent legislation signed by California Governor Gavin Newsom that prohibits third-party brokers from advertising, selling, or transferring tee-time reservations at publicly owned golf courses without explicit written consent from course operators. The law was introduced in response to complaints from local golfers frustrated by the difficulty in securing tee times at Los Angeles municipal courses, which brokers have often advertised on social media platforms, including the Korean messaging app KakaoTalk.

While the indictment alleged the tee-time business generated nearly $700,000 in revenue from 2021 through 2023, the plea agreements do not detail how much of the unreported income is attributable solely to this operation. Ted Kim has previously stated that his booking methods were legitimate and did not involve illegal manipulation of the reservation systems.

Both brothers remain out on bond and are scheduled to be sentenced on January 12. Ted Kim faces up to five years in federal prison, while Steve Kim faces a maximum sentence of three years. Neither the brothers nor their attorneys have publicly commented following the guilty pleas.