Bradenton's IMG Academy, the high-profile sports boarding school known for churning out top athletes, will pay $1.72 million after the U.S. Treasury found it processed tuition payments that ultimately traced back to people sanctioned for ties to a Mexico-based drug cartel. According to federal officials, IMG accepted 89 payments over several years that covered tuition, housing and other fees for the children of two specially designated nationals, putting a spotlight on how private boarding schools vet international payors and third-party transfers.
How the Treasury framed the settlement
In an enforcement release, the U.S. Treasury's Office of Foreign Assets Control said IMG Academy, LLC agreed to a $1,720,000 settlement to resolve 89 apparent violations of OFAC counternarcotics sanctions. OFAC said the transactions involved yearly tuition enrollment agreements with two Specially Designated Nationals and that the apparent violations spanned multiple academic years. The agency labeled the conduct non-egregious but also noted that IMG did not voluntarily self-disclose the matter.
Payments, students and 'reckless disregard'
According to the enforcement documents, one student-athlete enrolled in January 2018 and remained through a spring 2023 graduation cycle, while another enrolled in July 2020 and withdrew in June 2022. Annual tuition charges for the two ranged from roughly $47,026 for a half semester to as much as $102,235 for a full year. OFAC said IMG "demonstrated reckless disregard for U.S. sanctions requirements," pointing out that the SDNs' names were already on the Specially Designated Nationals list and that even minimal screening would have flagged them.
IMG's response and internal fixes
IMG Academy told WWSB that it disclosed the payments to OFAC once it became aware of the students' status and has cooperated with the agency's investigation. The academy said a change in ownership in June 2023 prompted a comprehensive lookback and the hiring of a new chief legal officer, and that it has since rolled out a risk-based sanctions compliance program along with enhanced screening measures for anyone paying tuition or related fees.
Why schools need sanctions screening
OFAC's enforcement release warned that academic institutions with international students face cross-border payment risks when families or third parties send funds, a point compliance advisers say is increasingly visible in elite sports academies. As KPMG notes, the $1.72 million figure tracks OFAC's base penalty under its enforcement guidelines and serves as a reminder that schools should screen students, counterparties and payors against the SDN list and run independent testing of their controls.
Legal takeaway
The settlement is civil and, by OFAC's calculation, non-egregious, which meant the base schedule amount applied instead of an elevated penalty. Coverage of the case has also stressed that even non-egregious OFAC actions can carry lasting reputational and operational consequences for private academies, according to Law360.
IMG Academy has paid the settlement to resolve OFAC's civil claim and says it has tightened its internal controls. The Treasury action sends a clear signal that schools accepting international funds need to treat sanctions screening as a front-line compliance issue. Around Bradenton, parents and coaches will be watching to see whether the academy's revamped program changes anything about who gets in and how tuition is paid.
