Permissible and impermissible items of trade

Using a gray market phone

Q: I bought a brand new xiaomi smartphone in 2016. But the next year after I checked on government regulations website, my phone was "indeed" proven illegal. Illegal here means imported without any permissions from the government (not stolen, I already know the rules about stolen items). So no doubt about this. This leaves me questions:

1. What is the ruling for anything that we bought, we didn't know it is illegal at the beginning, but then it is proven illegal afterwards? (again, illegal here = "avoid taxes" not stolen items)

2. Am I allowed to continue using this or should I get rid of it?

3. What level of investigations should every Muslim do for each business transaction like this? 

Drinking and selling alcohol

Q:

1. If you do good deeds like fasting, salah, etc. but at the same time you have a business which sells alcohol or where you work sells alcohol, would Allah accept your good deeds like fasting, salah, etc?

2. Also, is selling alcohol the same as drinking it?

3. I heard those who drink alcohol in the dunya (world) wouldn't drink wine in Jannah, does that apply to people who don't drink it but sell alcohol?

Husband selling haraam items

Q: I'm a sister with 6 kids. I live in usa and my husbands earnings are haram. He has stores that have alcohol and lotto, some pork items and some drug items and food as well, and he imports illegal cigarettes. Can I report him to the authorities about his illegal sale of untaxed cigarettes so they can strip him his licence for the alcohol and lotto and cigarettes so that our store can be halal. At least he'll reflect and can't return those licence. Can I do this for the sake of our income and spirit because he would not listen to me. He loves the flowing of the money and doesn't care where it's coming from.