The News Agency of Nigeria (NAN) reports that Ali was among 10 suspected internet fraudsters paraded on May 17 by the EFCC operatives.
The EFCC personnel had raided a residence inside the Favour Land Estate, Life Camp, Abuja and Kozzographa alongside nine others were arrested following a tip-off by an anonymous source.
The agency said that the suspects would be charged to court as soon as investigations were concluded.
But Ali in a petition to the EFCC Acting Chairman, Ibrahim Magu, on May 31 demanded a compensation of N100 million and an unreserved apology for arresting him wrongly and giving a libelous information to the public about him.
The music producer, through his lawyer, Mr Pelumi Olajengbensi, said that he would drag the EFCC to court for refusing to retract the negative publications about him after a seven-day ultimatum.
“He lost a contract of five million Naira with United Global Resolve for Peace (UNGREP), which he had been interviewed for and hitherto offered unequivocally because the contractors became disturbed and concerned by the publication thus doubtful of his reputation.
“He has been ostracised by his colleagues and associates as well as senior associates who usually refer to him for jobs in the past, thereby losing their trust and reference.
“He has been bombarded with a barrage of calls from friends and family members calling his reputation to question, while expressing their disappointment and indicating their intention to cut all connection with him forthwith.
“His relationship with his intended life partner has been irreparably strained by the negative publicity generated by the unlawful arrest, particularly the publication on your media platform on same matter.
“The publication has led to close clients taking their jobs off him and taking them to other persons thereby amounting to great level of loss and in some cases varying level of indebtedness,” Ali’s lawyer stated in the petition to EFCC.
Ali also claimed in the petition that his health and psychology had been affected following the his arrest and alleged assault by the commission's operatives.
He said that the men that raided his home were dressed in black with no means of identifying them as officers of the EFCC.
The petitioner had given the EFCC seven days to meet his conditions or face legal action.