Elite Academy That Trained 150 Pros Hit With $1.7M Fine After 89 Cartel-Linked Violations

The U.S. government just hit IMG Academy—a famous Florida sports school that trains future professional athletes—with a $1.72 million fine. The reason? For five years, the school accepted tuition money from two parents who were on a federal list of people linked to a Mexican drug cartel. There were 89 violations in total. The worst part? The parents’ names were on the government’s watchlist the entire time. All IMG had to do was check—but they never did. Not even once. Between 2018 and 2022, cartel-connected cash flowed straight into one of America’s most prestigious sports academies.

Inside IMG Academy

IMG Academy isn’t your average high school. IMG Academy has been around since 1978 and has produced 150 professional athletes in the last ten years alone. Some of the biggest names in sports trained there—NFL stars Evan Neal and JC Latham, NBA player Zach Edey, and tennis greats Maria Sharapova and Kei Nishikori. Just this year, four of its former students were picked in the first round of pro sports drafts. Tuition costs between $97,000 and $102,000 a year—that’s how much parents pay for a shot at turning their kid into the next superstar. The alumni list reads like a sports hall of fame.

How Cartel Money Flowed Into an American Classroom

Here’s how it went down: Two students enrolled between 2018 and 2022. Their parents—both designated under the Kingpin Act for supporting a Mexican drug cartel—signed tuition contracts using their real names. Wire transfers came from Mexico, credit cards stayed on file, and IMG processed everything without question. When did students have leftover balances? The school rolled them into next year’s tuition. OFAC never revealed which sports these kids played or their identities. The money just kept flowing.

Full Names on File for Five Years

This is where it gets wild. The sanctioned parents’ full names appeared on enrollment applications, tuition agreements, and monthly invoices for five straight years. IMG Academy sent these parents bills, emailed them about payments, and adjusted their accounts—all while their names were sitting on a government watchlist that anyone could look up for free. OFAC said it bluntly: even the most basic background check at any point would have flagged these parents. This went on for five years. The school had their names right in front of them the whole time and never once checked. It really was that simple a mistake to avoid.

No Compliance Program, No Screening, No Excuses

Between 2018 and 2022, IMG Academy had exactly zero sanctions compliance infrastructure. No screening systems, no staff training, no third-party vetting. IMG Academy admitted it had no system in place to verify whether individuals were sanctioned. But OFAC fired back with a key point: even if IMG didn’t know the parents were on a watchlist, the school absolutely knew it was doing business with them—sending them invoices, emailing them, and charging their credit cards. Under U.S. sanctions law, not knowing isn’t an excuse. If you do business with someone on the list, you’re responsible—whether you realized it or not.

$1.72 Million Penalty

OFAC counted 89 violations: six enrollment agreements plus 83 payment transactions. The violations were classified as “non-egregious,” but IMG took a hit because they didn’t self-report voluntarily—OFAC had already started investigating. Aggravating factors? “Reckless disregard” for sanctions law and giving cartel-linked individuals access to U.S. financial services. Mitigating factors included no prior violations and full cooperation upon the arrival of new ownership in June 2023. Final bill: $1,720,000—the maximum for non-egregious cases of this scale.

New Owners, New Leadership, Old Problems Discovered

Plot twist: these violations happened under previous ownership. When new owners took over in June 2023, they brought in a new Chief Legal Officer who immediately launched a compliance audit. That review uncovered what five years of prior management somehow missed: a systematic pattern of sanctions violations that had been hiding in plain sight. The new team implemented proper screening, cooperated with OFAC’s investigation, and agreed to extend the statute of limitations. IMG’s response: “Since that isolated incident, extensive measures have been taken.”

The Kingpin Act

The Kingpin Act has been around since 1999, designed to freeze out drug traffickers from the U.S. financial system. It’s designated over 4,000 individuals and entities in nearly three decades. But this is the first time OFAC has gone after an educational institution. Why? Schools were never subject to the same compliance rules as banks or casinos. International tuition payments flowed freely without screening—a regulatory blind spot that lasted over 20 years. IMG just became the test case.

OFAC’s Warning to Every School in America

OFAC didn’t just fine IMG—they sent a message to every school in America. In the enforcement release, OFAC stated that academic institutions face “unique risks” because of the “variety of parties who may satisfy financial obligations for a student.” Translation: screen everyone—students, parents, anyone making payments. Do regular checks, make sure your staff knows the rules, and don’t think you’re safe just because payments come through someone else. Legal experts are saying it loud and clear: if your institution takes money from overseas, you need to pay attention. Following compliance rules isn’t optional anymore—it’s required.

What Happens Next

This case is going to change things across American education. Right after the IMG fine, the government launched a whistleblower program that pays people for reporting violations that result in penalties of over $1 million. That’s a huge deal. Schools, universities, hospitals, real estate companies could now face the same kind of crackdown. As one legal expert put it, organizations that never thought sanctions rules applied to them are now at risk, especially when payments come through middlemen or from Latin America. Big compliance changes are on the way.

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Sources:
OFAC Official Enforcement Release, “Settlement Agreement: IMG Academy, LLC,” February 12, 2026
Sports Illustrated, “Florida’s IMG Academy Fined $1.7M for Accepting Fees Linked to Mexican Drug Cartel,” February 16, 2026
KL Gates Legal Analysis, “Narco Traffickers in the Classroom—and Whistleblowers at the Gate,” February 16, 2026
National Law Review, “OFAC Enforcement Action Against IMG Academy, LLC: Implications for Schools and Universities,” February 16, 2026
Fox News, “IMG Academy Paying Nearly $2 Million in Fines After Students’ Parents Linked to Mexican Drug Cartel,” February 17, 2026
Ministry of Sport, “IMG Academy Settles with OFAC for $1.7 Million Over Counternarcotics Violations,” February 18, 2026