Elite Sports Academy Fined $1.7M for Ties to Drug Cartel

IMG Academy penalized by U.S. Treasury Department for transactions with sanctioned individuals

Published on Feb. 15, 2026

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The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) has reached a $1.72 million settlement agreement with IMG Academy LLC over allegations of repeated transactions with individuals sanctioned for their connections to a Mexican drug cartel. The elite sports training and educational institution failed to properly screen students and families, exposing the organization to significant financial and legal risks.

Why it matters

This case highlights the importance of rigorous due diligence for educational institutions with international enrollment, as failure to adequately screen students and families can lead to severe penalties, even if the violations are unintentional. It underscores the need for effective internal controls to prevent sanctions violations and keep illicit actors from benefiting within the United States.

The details

According to the OFAC, between 2018 and 2022, IMG Academy entered into annual tuition and enrollment agreements to support the attendance of two individuals designated as Specially Designated Nationals (SDN) due to their support of a Mexican narcotics trafficking organization. The OFAC cited IMG Academy's failure to comply with sanctions requirements, specifically a lack of sanctions verification despite receiving complete name information that matched entries on the SDN List.

  • The OFAC agreement with IMG Academy was reached on February 15, 2026.
  • The alleged violations occurred over a five-year period from 2018 to 2022.

The players

IMG Academy LLC

An elite sports training and educational institution recognized for training professional athletes, world champions, and Olympic medalists.

Office of Foreign Assets Control (OFAC)

A financial intelligence and enforcement agency of the U.S. Treasury Department responsible for administering and enforcing economic and trade sanctions.

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What’s next

The OFAC stated the purpose of this action is to encourage institutions to implement effective, risk-based internal controls to prevent sanctions violations and to prevent illicit actors from benefiting within the United States.

The takeaway

As institutions increasingly operate on a global scale, this case serves as a cautionary tale for educational organizations to strengthen their compliance procedures and ensure thorough screening of students and families, even at the elite level, to avoid exposing themselves to significant financial and legal risks.