IMG Academy Hit with $1.7 Million Fine Over Cartel Ties
BRADENTON, Fla. – IMG Academy, the prestigious boarding school and athletic training center in Bradenton, Florida, has agreed to pay a $1.7 million fine for accepting tuition payments from individuals linked to Mexican drug cartels, according to the U.S. Treasury Department. The settlement, announced by the Office of Foreign Assets Control (OFAC) on February 12th, highlights the critical importance of sanctions compliance, even for educational institutions.
The Investigation Unveiled
Between 2018 and 2022, IMG Academy unknowingly enrolled two students whose parents were identified as providing financial support to a major Mexican Drug Trafficking Organization (DTO). The academy accepted tuition, lodging, and other fees totaling between $97,867 and $102,235 per academic year for each student – a total of 89 payments received via wire transfers from third parties in Mexico.
These transactions reportedly violated the Foreign Narcotics Kingpin Sanctions Regulations. While IMG Academy promptly informed authorities upon discovering the potential violations, a federal investigation was already underway. The Treasury Department stated that IMG demonstrated a “reckless disregard for U.S. sanctions requirements” by failing to conduct adequate sanctions screening checks.
Impact of the Payments
The acceptance of these funds allowed the children of alleged DTO leaders to access elite academic and athletic training within the United States. As the Treasury Department explained, this conduct facilitated commerce with sanctioned individuals and provided them access to the U.S. financial system. This case underscores the potential for even indirect support to benefit illicit organizations.
IMG Academy’s Response and Remedial Actions
The Treasury Department acknowledged that IMG Academy had no prior regulatory issues in the five years preceding this incident. Furthermore, the academy took immediate action upon discovering the violations, implementing a comprehensive sanctions compliance program and fully cooperating with the investigation.
In a statement, IMG Academy affirmed its commitment to maintaining the highest standards of compliance and integrity. They admitted to lacking an OFAC sanctions compliance program between 2018 and 2022 and unknowingly enrolling students whose parents were on the OFAC Specially Designated Nationals (SDN) List. The academy emphasized the “extensive measures” taken to rectify the situation and prevent future occurrences.
You can find more information about OFAC sanctions and compliance requirements on the U.S. Department of the Treasury website.
Looking Ahead
This case serves as a stark reminder for all organizations, including educational institutions, to prioritize robust sanctions compliance programs. Thorough vetting of students and their families, coupled with ongoing monitoring, is crucial to prevent inadvertently supporting illicit activities. IMG Academy’s swift response and commitment to remediation are positive steps, but the financial penalty highlights the serious consequences of non-compliance.
