An international arms dealer has been found guilty for illegally supplying 80,000 machine guns and pistols as well as 32 million rounds of ammunition from China to Nigeria following investigations by HMRC.

Gary Hyde, 43, helped arrange to buy and ship the guns, including AK47 assault rifles and Makarov pistols, along with ammunition from China to Nigeria, from his UK registered company breaching UK trade controls.

Following a search of Hyde's business premises and home, HMRC investigators discovered emails from his computer which confirmed he was an integral part of the deal. They also used mobile phone records to trace Hyde's movements to prove that he was in the UK when making the shipment arrangements between China and Nigeria, meaning a UK control licence was required for this deal.

Hyde, from Newton on Derwent near York, intentionally ignored the requirement to have a licence and hid in excess of $1m (£620,000) of commission payments paid in respect of a $10m (£6.2m) contract. The ill-gotten gains were transferred to his offshore bank account located in Liechtenstein in an attempt to hide the proceeds of his crime.

Peter Millroy, HMRC's assistant director of criminal investigations, said: 'Hyde was an experienced arms dealer who thought he could deliberately not comply with the law in order to make some extra money to hide offshore.

'He knew full well that his activity required a licence but he decided not to comply with the law, and we are delighted that after an extensive investigation he has been brought to justice.'

Hyde was convicted of two counts of being knowingly concerned in the movement of controlled goods with intent to evade the prohibition on actions done or arrangements made in connection with the movement of controlled goods between third countries contrary to Article 9(2) of The Trade in Goods Control Order 2003; and one count of Concealing Criminal Property, contrary to section 327 of the Proceeds of Crime Act 2002.

He is due to be sentenced on 23 November 2012.