During a court hearing in Los Angeles, Steve Kim pleaded guilty to filing a false tax return, while Ted Kim pleaded guilty to tax evasion. Their plea agreements indicate that the income from the tee-time business was not fully quantified, but Steve Kim acknowledged omitting more than $27,500 from his 2021 tax return.

In addition to the tee-time business, the brothers also admitted to falsely claiming exemptions from federal income-tax withholding while employed as MRI technicians. The plea agreements stipulate that the brothers will pay at least $581,616 in restitution for tax losses that extend to years before their tee-time venture began.

The guilty pleas come as a new law, signed by Gov. Gavin Newsom, bans third-party brokers from advertising or selling tee time reservations at publicly owned golf courses without the operator's consent. This legislation was a response to widespread complaints about brokers acquiring and reselling tee times, particularly at Los Angeles municipal courses.