@Wellyboot: Illegal > Blackmailer - "Give me 'X' or else I'll ..."
But surely he's not saying he will do anything at all, he's only saying he won't do something specific that he's under no legal obligation to do in the first place.
All he's saying is "I have some information that I'm willing to sell you for 'X'" which is just the standard business model of any consultancy.