He was charged with possessing a firearm with intent to endanger life.
Mel Sealy, 50, was paid an undisclosed sum in an out-of-court settlement after he successfully sued North Wales Police for wrongful arrest and imprisonment.
The former police officer from Barbados, was held in custody for 10 days after he was arrested in 1998.
He was charged with possessing a firearm with intent to endanger life.
"I feel that at long last I have been vindicated," he said.
Mr Sealy's ordeal began when he realised he did not have the right drill bit to put up shelves at his home in Prince of Wales Avenue, Flint.
He said he popped up the road with the cordless drill to see a friend.
But as he was walking back home someone reported that they had seen a man walk down the street with a sawn-off shotgun.
After returning home, Mr Sealy then heard a loud-hailer call his name and saw armed police had surrounded his home.
Officers then searched his home but did not find a weapon.
"They even looked inside my televisions and my videos," explained Mr Sealy, a DIY enthusiast.
Later, the prosecution offered no evidence against him.
North Wales Police said at the time that they had received more than one report that a man was walking down the street with a firearm.
'Mischief-making'
They had responded accordingly for they could not take any chances where guns were reported to be involved.
Mr Sealy said he believed the cause of the trouble was "mischief-making".
"Someone had it in for me and called the police.
"After way I was treated I have now been vindicated. The money is not important. There was a principle here."
"It was all over a drill. They even seized that. I've since had it back, but it has never worked since."
Mr Sealy is now taking a second action against the police following a similar raid at his home three weeks after the first.
Again Mr Sealy was ordered out together with his son at gunpoint.
His son has since received an out-out-court settlement and Mr Sealy has taken civil action against the police.
"I had an argument with someone and the next thing armed police were at my door again," he said.
"I am West Indian...and because of my appearance they have type-cast me as a criminal."
No charges ever arose from that incident.
A spokeswoman for North Wales Police said that with a second action still pending it would be inappropriate to make any comment at this stage.