IMG Academy Settles for $1.72 Million Over Drug Cartel Ties
A high-profile sports training facility in Florida, IMG Academy, has agreed to a significant settlement of $1.72 million. This comes after it was found that the academy accepted tuition payments from two students linked to Mexican drug cartels, according to federal authorities.
Located in Bradenton and recognized for its strong athletic programs, IMG faced nearly 90 violations related to drug laws for accepting tuition—$98,867 for one student and $102,235 for another—from individuals categorized as “Specially Designated Nationals.” These individuals were involved in providing funds and support to sanctioned drug operations, per information from the U.S. Treasury.
The students attended the academy from 2018 to 2022. While their identities and the specific sports they participated in weren’t disclosed, the academy reportedly allowed payments that, as officials noted, included wire transfers from third-party sources in Mexico. This setup seemed to enable the cartel to route money through U.S. financial channels.
The violations resulted in 89 fines due to breaches of foreign drug kingpin sanctions regulations. The Treasury Department indicated that IMG Academy exhibited a “reckless disregard” for U.S. sanction requirements, primarily by not conducting necessary checks on its financial partners.
“This situation underscores the fact that sanctions risks exist across various sectors and institutions,” an official stated. They added that even domestic firms are not immune to the risks presented by international transactions, albeit unintentionally.
Although the sports academy alerted the Office of Foreign Assets Control (OFAC) when it learned about the violations, it turns out a federal investigation was already in motion. In response, IMG Academy has taken steps to strengthen its screening processes for student-athletes to prevent such issues in the future.
“IMG Academy is committed to the highest standards of compliance and integrity in all our operations,” a representative commented, acknowledging that between 2018 and 2022, they did not have a comprehensive compliance program in place. They entered agreements and collected fees from two individuals who were inadvertently on OFAC’s Specially Designated Nationals list.
Once aware of the situation, the academy took the initiative to disclose the matter to OFAC and has since implemented extensive measures to develop a thorough sanctions compliance program.
