An Asian employee at the Tax Credit Office in Preston, accepted an out of court settlement of £700,000 after five Civil Servants: Tony Smith, Nick Ivell, Tim Fisher, Anthony Stansfield and Phil Davies, accused Mr Al of being an extremist for heckling the BNP at a peaceful of protest in Burnley, and made a number of false sexual allegations aginst him after his details appeared on a far right hate site Redwatch because of his studies on the BNP. Mr Ali has also been reinstated but has resigned from HMRC in disgust for accusing him of being an extremist for heckling the BNP in the first place.

Mr Ali was also accused of expressing support for suicide bombers. When asked about this, Mr Smith told HMRC investigators, he never heard Mr Ali say he supported suicide bombers, he just assumed he did because he wore an Arabic headscarf.