The anti-smuggling police on Tuesday began an investigation into "smuggling" and "violating regulations of law on accounting causing serious consequences" by Bui Quang Huy, 45, general director of Nhat Cuong Technical Services Trading Co. Ltd.

Eight others have been accused of being his accomplices and arrested on the same charges.

The police said Huy was the leader of an organized crime group responsible for cross-border smuggling and maintaining two sets of accounting books to conceal trillions of dong worth of revenues (VND1 trillion = $42.7 million). Police have not revealed further details.

Last Thursday officers raided nine stores and a warranty center of Nhat Cuong Mobile and seized thousands of mobile phones, tablets and other electronic items before closing them down.

Nhat Cuong Mobile belongs to Nhat Cuong Technical Services Trading Co. Ltd., set up in 2001 as a phone repair shop. Besides the retail stores and warranty center in the capital, it also has an ERP (enterprise resource planning) center in Ho Chi Minh City.

It has a charter capital of VND38 billion and its businesses include trading of electronic and telecommunications equipment and components, mobile phone manufacturing, pawnbroking, and a travel agency.

In addition to being Nhat Cuong's general director, Huy is also the legal representative of Nhat Cuong Software Co. Ltd., which has done a number of technology projects for Hanoi including a residential data project.

The police are expanding their investigation to clarify the roles of the nine suspects and other related individuals.

Huy and his accomplices face 12-20 years in prison for smuggling and three to 12 years for violating accounting law regulations.