After speaking to witnesses who told him where his car had gone, Sebastian said he went to pick it up. He called the police and told them he'd found the car.
He said that he was on hold for 45 minutes and he drove to a nearby car wash to wait.
"So I'm sitting in this car wash when all these police converge with guns drawn," he said. "It's not really their fault because to them I'm driving a stolen car."
He tried to explain the situation but he was told to "shut up" and to get on the ground.
He complied, but when he was on the ground he said a police officer put a knee on his back and threw his phone away, smashing it.
"He actually had a gun pressed into my forehead," he said. "It was full-on. I could feel the metal of this gun and there was so many of them."
He said one officer realised what was going on and defused the situation.
Sebastian said he even sympathised with the work police have to contend with in America.
"They deal with extremely heavy handed members of the public and criminals," he said. "It's not like here. Everyone's got a gun."
It has been a rough week for Sebastian, after his former manager was arrested and charged with defrauding the singer of $1.15 million over multiple years.
Titus Day, 47, was charged overnight with 61 counts of dishonestly obtaining financial advantage by deception and faced court on Thursday.
Sebastian said in a statement he had been left "absolutely devastated" after his ex-manager was charged with fraud offences for allegedly keeping more than $1 million from the singer over seven years.
He said he parted ways with Day in November 2017 and he was "absolutely devastated" to learn of the nature and detail of the charges.
"All my income was controlled via Titus into a Trust account and after noticing some disparities in payments I requested some financial information I was rightfully entitled to and our relationship began deteriorating," he said.
"Over these last years, my integrity and reputation have been questioned, and many untruths have been publicly stated.
"For me this has been deeply personal and this period has been the toughest of my life."