BRADENTON, Fla. – IMG Academy, the renowned sports training and academic institution in Bradenton, Florida, has agreed to pay a $1.7 million fine to settle potential civil liabilities stemming from accepting tuition payments from individuals connected to a Mexican drug cartel, the U.S. Department of the Treasury announced on February 12, 2026. The settlement with the Office of Foreign Assets Control (OFAC) resolves 89 apparent violations of counternarcotics sanctions between 2019 and 2025.
The investigation revealed that IMG Academy entered into yearly tuition agreements with two individuals sanctioned for their ties to a Mexico-based drug cartel and subsequently processed payments from them. These payments, ranging from $97,867 to $102,235 per academic year, were for tuition, lodging, and other fees, according to the Treasury Department’s release. The case highlights the critical importance of sanctions compliance for educational institutions and the potential consequences of failing to adequately screen international transactions.
While the Treasury Department did not publicly identify the students or their parents, the investigation found that IMG Academy did not have an OFAC sanctions compliance program in place during the period in question. The payments were made via wire transfers from third-party individuals in Mexico, and federal investigators determined that IMG Academy demonstrated “reckless disregard for U.S. Sanctions requirements” by failing to screen these transactions against the Specially Designated Nationals (SDN) List. You can find more information about OFAC’s actions on the Treasury Department’s website.
Details of the Violations
According to the OFAC settlement, IMG Academy’s conduct allowed individuals providing financial support to the sanctioned cartel to access the U.S. Financial system and benefit from elite athletic and academic training. The violations involved accepting payments from individuals on the SDN List, effectively enabling commerce with sanctioned entities. The Miami Herald reported that the school accepted payments from these individuals for five consecutive years. Read more about the case in the Miami Herald.
Despite the violations, the Treasury Department acknowledged that IMG Academy self-disclosed the issue upon discovering it and fully cooperated with the investigation. The department too noted that IMG Academy had not previously violated sanctions regulations in the five years prior to this incident and has since implemented a comprehensive sanctions compliance program.
IMG Academy’s Response
In a statement, IMG Academy affirmed its commitment to maintaining the highest standards of compliance and integrity. “IMG Academy is committed to maintaining the highest standards of compliance and integrity in all aspects of our operations,” the statement reads. “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. 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.” Sports Illustrated provides further details on IMG Academy’s response.
The school, known for attracting top young athletes and preparing them for collegiate and professional careers – having placed 150 student-athletes into the professional ranks in the last decade – has taken “extensive measures” to prevent similar incidents in the future. This includes implementing robust screening procedures for all incoming students and their families.
The $1.7 million settlement reflects OFAC’s determination that IMG Academy’s conduct was non-egregious and not voluntarily disclosed. MSN also reported on the settlement, highlighting the school’s cooperation with the investigation.
The incident serves as a stark reminder for educational institutions and other organizations to prioritize sanctions compliance and thoroughly vet all financial transactions, particularly those involving international parties. As investigations continue to uncover the financial networks supporting illicit activities, vigilance and adherence to regulatory requirements are paramount.
Looking ahead, IMG Academy will be closely monitored to ensure full compliance with OFAC regulations. The case is likely to prompt increased scrutiny of financial practices within similar institutions and may lead to stricter enforcement of sanctions compliance measures across the education sector. Share your thoughts on this developing story in the comments below.
