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 Departments 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
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 Californias 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