We've speculated before about Hulk's involvement with the sex tape scandal. He hasn't said much since the Gawker lawsuit, but more info is finally coming out.

It seems the tape in question was actually stolen and was being used to try and extort Hogan for a million dollars.

Hogan was recorded having sex with the wife of shock jock Bubba the Love Sponge Clem. Hogan became the target of a million dollar blackmail scheme.

Police conclude the scheme started when Clem's co-worker, Matthew Loyd who went by the radio name of Spice, stole the tape.

Veteran Criminal Defense Attorney John Trevena says it seems like a slam dunk for prosecutors, "It seems to be they have identified the person who stole the tape, Trevena said ,"They have clear evidence of an extortion attempt."

That clear evidence comes from an FBI taped conversation where that employee's lawyer says to Hogan's attorney:

"Wants to start negotiating, 1 million dollars"

Two weeks later the attorney lowers the price saying,

"I have authority bottom line 400,000"

And then he agrees to take "3 payments equaling 300-thousand."

However Hillsborough State Attorney Mark Ober refuses to prosecute. Ober says he isn't sure he could get a conviction.

Trevena says, "I'm confused as to why they would believe that."

Documents indicate Hogan was a victim.

And they show Clem was a victim because his employee stole the tapes from him.

Read More at WTSP