IMG Academy Settles Charges Over Tuition Payments Linked to Drug Cartel

IMG Academy, a well-known sports training facility in Florida, is set to pay $1.72 million to resolve allegations that it collected tuition fees from two student-athletes connected to a Mexican drug cartel, according to federal authorities.

The Bradenton-based school, renowned for its exceptional athletic programs, faced nearly 90 violations related to anti-drug regulations. These came about due to the school’s acceptance of funds from two students allegedly linked to a drug organization based in Mexico.

Between 2018 and 2022, the student-athlete in question was enrolled at IMG Academy. Federal authorities didn’t disclose the identities of the students or the specific sports they were involved in. However, it was noted that the academy received tuition payments annually, totaling $98,867 from one student and $102,235 from another. Both students, labeled as “Specially Designated Nationals,” reportedly provided monetary benefits and services to the sanctioned cartel.

It appears that third-party individuals facilitated wire transfers from Mexico to IMG Academy, effectively allowing the cartel to infiltrate the U.S. financial system with their funds.

Consequently, IMG Academy incurred 89 fines for breaching regulations set to prevent dealings with foreign drug lords.

The Treasury Department’s Office of Foreign Assets Control (OFAC) criticized IMG Academy for showing a “reckless disregard” for U.S. sanctions and for failing to conduct necessary screenings on its business associates. They emphasized that “this incident underscores that the risks of sanctions are widespread across different sectors.” So, it seems that even institutions with a primarily domestic focus can unintentionally become involved with prohibited parties.

IMG Academy did notify OFAC once the violations came to light, although an investigation had already been initiated. Over the last decade, the school has produced around 150 professional athletes.

In light of these events, IMG Academy has stated that it is reinforcing its screening process for student-athletes. A spokesperson noted, “IMG Academy is dedicated to upholding the highest compliance and integrity standards.” They also acknowledged that from 2018 to 2022, there was no designated compliance program in place and that tuition agreements were made with two individuals not known to be on OFAC’s Specially Designated Nationals list.

“After discovering this issue, we informed OFAC and fully cooperated with the subsequent investigation. Since then, IMG Academy has implemented a comprehensive sanctions compliance program to prevent such occurrences in the future,” they added.