Prosecutor Joseph Hudson told Bradford Crown Court a man was put to the floor at a property and subjected to punches and kicks.
He said the victim also had a lighted cigarette put out on his arm and was told he couldn’t leave the property until he admitted stealing the money.
The terrified victim “confessed” in a bid to escape further assaults, but was then told he had to repay the money.
The man’s parents were contacted by phone and at first his father thought the demand for money was a joke, but threats were made and the victim was begging them for the money so he could be freed.
Jared Whitehouse, formerly of Brighouse and currently on remand in Northern Ireland - who was described by a judge as the ringleader in the blackmail - wanted the money to be transferred into his account.
Whitehouse eventually drove the man back to his parents' home in a van and let him go, but he threatened to return if the money was not transferred over.
The complainant, who suffered cuts and swelling to his face, said he had taken the money so the cash would be transferred but he later said he had not stolen the cash at all.
The money was transferred into Whitehouse’s personal bank account.
Whitehouse, 26, was jailed for 32 months after he admitted charges of false imprisonment and blackmail relating to the incident back in June 2018.
Tabish Adalat, 22, of Norfolk Place, Halifax, was locked up for 18 months after admitting the same charges and 25-year-old Nazam Ali, of Oak Terrace, Halifax, was jailed for 16 months after he pleaded guilty to the two offences.
Barrister Danielle Graham, for Whitehouse, said the “stolen” money belonged to others and her client was put under some pressure to get it back.
Recorder Ashley Serr said offences of blackmail strike terror into the hearts of victims and the case was too serious for anything other than immediate prison sentences to be imposed.