A 58-year-old company president arrested Saturday for possessing thousands of packs of counterfeit cigarettes in apparent violation of the Trademark Law is also suspected of marketing the tobacco in violation of the Tobacco Business Law, police sources said Sunday.

Fumio Sasai, president of Yazaki Sangyo, was arrested after police found 189 cardboard boxes containing nearly 100,000 packs of phony Mild Seven Lights and Seven Stars, well-known brands sold by Japan Tobacco Inc., the government's effective monopoly, at JT's office in Tokyo's Shinjuku Ward.

Sasai was arrested on suspicion of "possessing products resembling registered trademarks for the purpose of selling," according to the arrest warrant served on him.