Discipline inspection authorities in Hengyang City decided to remove Zhao Anmin from his post as the head of the city's health bureau and deputy secretary of the bureau committee of the Communist Party of China (CPC).
The officials have been transferred to discipline inspection and public security offices for further investigation.
According to local authorities, a criminal gang of six people, including two women, seduced leading cadres to have sex and used hidden cameras to record the acts for extortion.
From May to November in 2010, the six officials fell for the conspiracy and were blackmailed by the gang, which was later busted by the public security bureau.