IMG Academy fined $1.72 million for accepting cartel-linked tuition

The Florida boarding school processed payments from parents on a U.S. sanctions list.

Feb. 21, 2026 at 1:39am

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The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) has fined IMG Academy $1.72 million for accepting tuition payments from the parents of two student-athletes who were on OFAC's Specially Designated Nationals list for providing financial support to a sanctioned Mexican drug trafficking organization. The school processed the payments, including wire transfers and credit card transactions, over a six-year period from 2019 to 2025.

Why it matters

This case highlights the importance of robust sanctions compliance programs at educational institutions, especially those that attract international students. IMG Academy's failure to have such a program in place allowed it to unknowingly accept funds tied to a Mexican drug cartel, raising concerns about the potential infiltration of illicit funds into the U.S. education system.

The details

According to OFAC, IMG Academy entered into tuition agreements and processed payments connected to the parents, who were listed on OFAC's sanctions list. The school accepted tuition, lodging, and other payments on 89 occasions, a violation of the Foreign Narcotics Kingpin Designation Act. The payments were often routed through non-designated third parties, primarily located in Mexico, and any remaining balances were rolled over to subsequent academic years.

  • From 2019 to 2025, IMG Academy accepted tuition payments from the parents.
  • One student-athlete attended IMG from 2018 to 2023, while the other attended from 2020 to 2022.

The players

IMG Academy

A sports-focused boarding school in Bradenton, Florida that has trained thousands of athletes who have gone on to play college and professional sports.

U.S. Treasury Department's Office of Foreign Assets Control (OFAC)

The government agency that administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals.

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What’s next

IMG Academy has hired a new chief legal officer to implement a comprehensive sanctions compliance program to prevent similar violations in the future.

The takeaway

This case underscores the need for educational institutions to have robust compliance programs in place to screen for and prevent any connections to sanctioned individuals or entities, in order to maintain the integrity of the U.S. financial system and education sector.