The sex chat led to the man from Östergötland in eastern Sweden being forced to pay some 1.9 million kronor ($280,000) to the gang.
The seven suspects, who are reported to all have some family connection to each other, have now been charged at Norrköpings district court for aggravated blackmail, among other charges.
The man’s problems began when he in 2009 started chatting with people who posed as young girls. He was then contacted by several members of the gang who said they were relatives of the young girl.
He was threatened that if he didn’t pay up they would contact his wife, employer and the police.
The alleged blackmail is reported to have continued over a period of two years with the man finally contacting the police in early 2011.
The suspects are for the most part residents of Västmanland and their ages are from 23 to 53 years old.
So-called grooming was outlawed in Sweden on July 1st 2009 and anyone found guilty of the offence classified as “contact with a child with a sexual motive” can be sentenced to fines or up to a year in prison.