Jason Teal (40), of Ightenhill Park Lane, and his colleague Glynn Jones (48), of Rochdale, who were employees of Bolton-based body armour supplier Armour Products International, sent hundreds of bullet-proof body armour and helmets to Iraq and Kuwait. They breached strict licensing laws to export the military-grade items without authorisation from the Department for Business Innovation and Skills.

The charges relate to deals made between 2003 and 2005.

Former managing director Teal admitted being knowingly concerned in the exportation of goods with intent to evade the prohibition or restriction thereon and Jones admitted being knowingly concerned in the exportation of goods with intent to evade the prohibition or restriction thereon.

Jones was sentenced to 50 weeks, suspended for two years, and made to pay £9,000 costs.

Investigators from HM Revenue & Customs obtained evidence from Teal and Jones' computers which showed they knew they were breaking the law to secure the orders which made the company more than £4m.

Teal was also made subject to a confiscation order for £9,000 at the sentencing hearing at Southwark Crown Court.

Mr Peter Millroy, assistant director of criminal investigation for HMRC, said: "Teal and Jones knew the law and were determined to circumvent it simply to make money. Export controls exist for a reason and HMRC will investigate and bring to justice anyone attempting to break the law."

Elspeth Pringle, prosecutor for the CPS Central Fraud Group, added: "Export licences are a vital tool for ensuring military equipment is not misused in conflict zones.

"Jason Teal and Glynn Jones knew this from their experience in the business, but tried to deceive the authorities just so they could fulfil orders in time.

"They flouted the law for the sake of profit – this was both selfish and reckless. It is impossible to know where the armour they passed on to others to sell has ended up.

"Mr Teal and Mr Jones knew the law and their responsibilities. This is the price for ignoring both."