IMG Academy Settles for $1.7 Million Over Tuition Payments Linked to Drug Cartels

IMG Academy, a top-notch academic and athletic training institution in Florida, has agreed to pay over $1.7 million to settle issues related to accepting tuition from families with connections to Mexican drug cartels.

On February 12, the U.S. Treasury Department’s Office of Foreign Assets Control announced the settlement, revealing that IMG Academy would pay $1.72 million to address 89 apparent breaches of counter-drug sanctions.

The department indicated that IMG processed tuition payments for two student-athletes whose parents had been sanctioned for supporting a Mexican drug trafficking organization. These students were enrolled at the academy from 2018 to 2022.

The total of 89 payments was found to be in violation of foreign drug lord sanctions, according to the department.

The Treasury stated that IMG’s actions allowed individuals tied to drug cartels to engage with Americans and access the U.S. financial system. However, they also noted that the violations were not deemed egregious and recognized IMG’s cooperation throughout the investigation.

“IMG Academy is committed to maintaining the highest standards of compliance and integrity in all aspects of our operations,” the academy responded.

The Treasury explained that between 2018 and 2022, the academy lacked a sanctions compliance program and unknowingly entered into fee agreements with two individuals who were on OFAC’s Specially Designated Nationals list. Once they became aware, IMG disclosed the issue to OFAC and fully cooperated with the investigation. Following this incident, they implemented a comprehensive sanctions compliance program.