I don't know what you think is missing from the story. Anyway, the story does not matter. The point is my financial information has been stolen, and now I am being blackmailed. This isn't a soap opera where you need every detail.
But just to show how simple the story is...
1) This person was a tech acquaintance from 2 to 3 years ago.
2) This person managed my servers for my online operations.
3) This person was eventually fired from server admin duty due to poor work.
4) 2 years go by.
5) I wake up, my email is hacked.
6) As the day goes on, my other online accounts are hacked (because they have my primary email).
7) I check server logs for unauthorized access. I retrieve an IP address.
8) Traced the IP. Address looks familiar.
9) Think back to my old server admin who lived in the exact place, compared IP's and they match.
10) Contacted this person.
11) Person admits to the hack, demands $600 or he will sell my financial information.
End of story. I'm not trying to be put on trial here. I have documents proving most of what I say, but I am not about to be giving out data that I may need for future litigation just to make people here believe me. I am looking for sound advice as to what my options may be. I am sure someone else must have been hacked, or had their financial data stolen before.