He was found guilty of running a number plate scam but has served no prison time.
Khan, 35, made headlines when he parked his supercar outside Birmingham Crown Court in April 2017 before it was later seized by officers.
A month later he appeared in court trying to prove he had bought the vehicle legally – only to be told that it had already been destroyed.
West Midlands Police said the Ferrari was crushed because it had no valid insurance and was officially classed as unroadworthy.
Khan was convicted of conspiracy to commit fraud, perverting the course of justice and concealing and converting criminal property in relation to a number plate scam, where he would register existing plates with the Driver and Vehicle Licensing Agency (DVLA) under his own name to sell them on.
He was jailed in his absence after fleeing to Dubai in the summer of 2018.
While he remains in Dubai, Khan told the Mail Online he plans to sue the police over the crushing of his car.
He said: “I have now started proceedings against West Midlands Police for unlawful conduct in relation to my Ferrari 458 Spider worth 200k.”
A Notice of Issue was sent to the Force on February 4 and the case is now with London County Court.
Shortly after leaving the UK, Khan then posted a video appearing to show him smash up a £30,000 gold Rolex. And just last year he filmed himself flying a plane over Dubai and stroking his pet Siberian tiger cub.
Police believe they may have tracked down his hideaway bolthole and he now faces extradition back to the UK.
A West Midlands Police spokeswoman said: “Zahid Khan has previously lodged a letter of claim directly with the force which has already been denied.
“We have now received notification he has issued proceedings before the court, we will respond to the claim via the court process in due course.”
Three others were jailed over their role in the £500,000 scam.