IMG Academy Fined $1.7 Million for Accepting Tuition from Families Linked to Mexican Drug Cartel
BRADENTON, Fla. – IMG Academy, the renowned sports training facility in Bradenton, Florida, has agreed to pay a $1.7 million fine for accepting tuition fees from two students whose parents are reportedly linked to a Mexican drug cartel, the U.S. Treasury Department announced on .
The settlement, announced by the Treasury Department’s Office of Foreign Assets Control (OFAC), stems from 89 apparent violations of counternarcotics sanctions. According to the OFAC, IMG accepted payments for tuition, lodging, and other fees between and from parents who were on a sanctions list for providing financial support to a “Mexican Drug Trafficking Organization and/or to its principal leader.”
The Treasury Department did not disclose the identities of the students or their parents in its release. However, the tuition payments ranged from $97,867 to $102,235 per academic year. These payments were typically made through wire transfers from third-party individuals in Mexico, according to the department.
The OFAC stated that IMG Academy’s actions allowed individuals providing financial support to a sanctioned Mexican drug cartel to conduct commerce within the U.S. Financial system. “This conduct allowed the children of two of the designated DTO’s (Drug Trafficking Organization) leaders to obtain elite academic and athletic training services in the United States,” the release stated.
Federal investigators reportedly learned of the apparent violations as soon as IMG Academy became aware of them and self-disclosed the issue. Despite this, the OFAC found that IMG Academy demonstrated “reckless disregard for U.S. Sanctions requirements” by accepting the payments and failing to conduct adequate sanctions screening checks.
IMG Academy, known for its rigorous training programs and placement of athletes into professional ranks – having placed 150 student-athletes into the professional ranks in various sports in the last decade – has taken steps to address the issue. According to the Treasury Department, IMG Academy had not previously violated sanctions regulations in the five years prior to this incident. The academy also reportedly implemented a comprehensive sanctions compliance program immediately after discovering the apparent violations and cooperated fully with the investigation.
In a statement, IMG Academy affirmed its commitment to maintaining high standards of compliance and integrity. “Between 2018 and 2022, IMG Academy did not have an OFAC sanctions compliance program in place and entered into tuition enrollment agreements and collected fees from two individuals who were unknowingly on OFAC’s SDN List,” the statement read. “Upon becoming aware of their status, we disclosed the matter to OFAC and fully cooperated with its investigation. Since that isolated incident, extensive measures have been taken by IMG Academy to implement a comprehensive sanctions compliance program.”
The $1.72 million settlement underscores the importance of thorough vetting procedures for educational institutions, particularly those attracting international students and substantial financial transactions. The case highlights the potential for illicit funds to be channeled through seemingly legitimate businesses, even those with a strong reputation for athletic excellence.
