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IMG Academy in Bradenton, Florida finds itself in hot water for accepting tuition fees linked to the Mexican Drug Cartel.
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced its punishment in release last week. The high school football and basketball powerhouse will be fined nearly $2 million.
Students were not named. Their sports were not revealed. The lone details related to their time at the academy involved cost and timeline.
Tuition for the students was reported to range from $97,867 to $102,235 per year. They were at the school between 2018-2022.
What is IMG Academy?
The self-described “world’s leading sports education brand,” it’s a prep academy known for on-field success. More from the school website:
IMG Academy is the world’s leading sports education brand, providing access and opportunity for student-athletes through innovative on-campus and online programming and experiences. Supporting the entire student-athlete developmental journey from exploration to specialization to graduation, IMG Academy offers a world-renowned boarding school and industry-leading camps at its Bradenton, Florida campus, along with team hosting, events and tournaments, professional athlete training, and more.
The academy seeks to land top athletic talent from all over the country, in all sports. In return, it promises top training, one-on-one coaching focus, the ability to play alongside other stars, and visibility in recruiting.
The campus resembles that of a miniature university. There’s even a hotel on the grounds for families and prospective student-athletes to stay while touring the school, housing, and top-notch sports facilities.
That all goes to say that it’s not your average high school experience. Sports are the main focus. The NCAA, and eventually professional careers, are the goal.
A number of former players have gone onto become college football stars, including Bo Scarborough, Grant Delpit, Nolan Smith, and Carnell Tate. Baseball and basketball boast lengthy lists of alumni, too.
In many cases, top players can secure scholarships. Those who don’t, however, pay top dollar.
IMG accepted Cartel money.
Tarek Fattal of Sports Illustrated was one of the first on the scene in reporting. He provided a few more details on the situation.
IMG Academy will be fined $1.72 million for accepting tuition fees for two students whose parents are linked to Mexican drug cartels…
IMG received wire transfers from third-party individuals in Mexico as part of the tuition agreements. IMG Academy therefore had the names of the sanctioned individuals, and OFAC said the academy failed to screen them, according to the federal office.
The school released a statement on the near-$2 million fine received. While it agrees it fell short in screening, it also noted that this was one a one-time occurrence.
An OFAC sanctions compliance program has since been put in place.
IMG Academy is committed to maintaining the highest standards of compliance and integrity in all aspects of our operations. 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.
IMG Academy says that it has identified the issue and taken the correct measures to prevent future missteps. That does not change the fact that it accepted money linked to the Mexican drug cartel for five years.
It will now have to deal with the $1.72 million repercussions.