22 C.F.R. § 1008.505
How are violations of this part determined for recipients who are individuals?
An individual recipient is in violation of the requirements of this part if the Inter-American Foundation President or designee determines, in writing, that—
(a) The recipient has violated the requirements of subpart C of this part; or
(b) The recipient is convicted of a criminal drug offense resulting from a violation occurring during the conduct of any award activity.