PITTSBURGH — Tung Tai Group Inc. has agreed to pay a $43,875 civil penalty for allegedly sourcing scrap metal from Cuba.

The San Jose, Calif.-based recycler was accused of violating the Cuban Assets Control Regulations in 2010, when it allegedly contracted to buy and sell Cuban scrap metal. The contracts were not disclosed to the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), which regulates and enforces the longstanding economic sanctions against Cuba.

The penalty originally was set at $65,000, but was lowered because the company had no prior OFAC violations.

It is the second time in less than a year that Tung Tai has faced headwinds for its business practices. In August, the company and two of its managers accepted a plea agreement on charges that they fraudulently sought reimbursement from California’s Electronic Waste Recovery and Recycling Program (amm.com, Aug. 7).

The company, executive vice president John Chen and yard supervisor Jason Huang pleaded no contest in Santa Clara County Superior Court after being charged with attempting to collect more than $1 million from the program for electronic waste that the company never collected or recycled.

The company could not be reached for comment.