The victims include cadres and staff from enterprises and public institutions in more than 10 provinces and cities, involving millions of yuan, the Hengyang city procuratorate said.
Ge Qiwei, head of the gang, whose original name was Zhou Bo, falsely claimed himself as a news reporter and blackmailed cadres with negative news, state-run Xinhua news agency quoted the procuratorate as saying.
He also fabricated and spread rumours to create troubles, which has severely smeared the image of local governments and disturbed social order, the procuratorate said.