A former security guard for Michael Schumacher and his accomplices are on trial in Germany for orchestrating a blackmail scheme against the Schumacher family.

Damon Hill has slammed Michael Schumacher’s former bodyguard after an alleged blackmail attempt on the Formula One icon’s family. It is alleged that Markus Fritsche threatened to release files including photos and medical records after being dismissed from Schumacher’s inner circle.

Bombshell new details have emerged around the $A23.4 million blackmail plot on Michael Schumacher and his family. German police have been leading investigations into the Formula One legend’s bodyguard and two others who have been accused of threatening his loved ones, The Sun reports.

A member of Michael Schumacher's security team stole 1,500 photographs and 200 videos in a €15 million ($15.7million) blackmail plot, German prosecutors have alleged.

Michael Schumacher has not been seen since his near-fatal skiing accident in 2013 but the F1 legend’s family have been wrapped up in a shocking blackmail plot after a threat from an ex-bodyguard