Elite Florida sports academy to pay $1.7M fine for accepting students, tuition linked to Mexican cartels

An elite Florida academic and sports training facility has agreed to pay a $1.72 million settlement for accepting tuition from two students with ties to the Mexican drug cartel, federal officials announced.

IMG Academy, a prestigious Bradenton prep school known for its powerhouse sports program, will fork over the massive sum after being hit with nearly 90 counternarcotics violations for funneling money from two student athletes linked to a Mexican drug syndicate, according to the US Treasury Department.

The two students were enrolled at the premier boarding school and sports facility from 2018 to 2022.

IMG Academy, a prestigious Bradenton prep school known for its powerhouse sports program, will fork over the massive sum after being hit with nearly 90 counternarcotics violations. NBAE via Getty Images

Federal officials, who didn’t name the students or specify the sports they played, said IMG accepted annual tuition payments – $98,867 for one student and $102,235 for the other – from two “Specially Designated National” individuals who provided money and services to sanctioned drug cartels.

The top-tier school received wire transfers from third-party individuals in Mexico, effectively giving cartels a way to move their money through the US financial system, officials said.

As a result, it was hit with 89 penalties for violating the Foreign Narcotics Kingpin Sanctions Regulations.

“IMG Academy demonstrated reckless disregard for U.S. sanctions requirements in committing the Apparent Violations, including by failing to conduct sanctions screening checks on its counterparties,” the Treasury’s Office of Foreign Assets Control charged.

The two students were enrolled at the premier boarding school and sports facility from 2018 to 2022. Getty Images

“This case highlights the pervasiveness of sanctions risk across a wide variety of sectors and institutions. Even for entities operating largely domestically, the presence of international touchpoints creates opportunities for impermissible dealings with sanctioned actors, inadvertently or otherwise.”

Officials said the sports institution, which touts 150 students turned pro in the last 10 years, flagged the violations to OFAC once they were discovered – but noted a federal investigation was already underway.

IMG Academy stressed it has since beefed up its screening process for student-athletes.

“IMG Academy is committed to maintaining the highest standards of compliance and integrity in all aspects of our operations,” the school told WFTS in a statement.

“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 IMGA Academy to implement a comprehensive sanctions compliance program.”