ST. AUGUSTINE, Fla. -- A 10-day investigation into a reported abduction over the Labor Day weekend led detectives to sex tapes, discussions of fake kidnappings, ransom notes, money drops gone wrong and two arrests -- including the woman who claims to be the victim.

Quinn Gray, the 37-year-old Ponte Vedra Beach woman who said she was kidnapped and released three days later, was arrested Wednesday afternoon and charged with extortion.

At a first appearance in St. Johns County court Thursday morning, Gray told the judge she did not know if she could afford an attorney. She remains in jail on a $1 million bond.

A 25-year-old Jacksonville man connected to the case was arrested early Tuesday morning, also on charges of extortion. According to the arrest report, Jasmin Osmanovic delivered two letters to Gray's home saying he was owed $50,000. He also told investigators that he had a sexual relationship with Gray and the couple spent that weekend together.

"They met chance encounter. Their relationship developed," St. Johns County Sheriff David Shoar said. "We don't know all there is to know about their relationship. But she knew him long before Labor Day weekend. She actually led us to him."

While being walked to jail, Gray denied knowing Osmanovic and said: "If I wanted $50,000 all I would do is take it out of the bank account."

Osmanovic said in the report that he did not kidnap her, but admits they spent time together at various places around town the weekend she had been reported missing.

Gray, a mother of two, who was reported missing by her husband on Sept. 4, was the subject of a three-day search that included the resources of the FBI and the U.S. Marshal's Service.

Three days later, Gray was found by a Clay County deputy walking in a parking lot near Orange Park. She told the deputy she had been kidnapped and she needed a ride home.

According to Osmanovic's arrest report, he admitted to delivering two letters to Gray's Ponte Vedra home demanding money from Gray's husband. One letter specified $50,000 and set a deadline.

Police said several attempts were planned to deliver the money. However, they never materialized. Police said on one occasion a drop of the money was made, but four college students from Georgia picked up the bag.

Police said after the students realized the bag contained money and then observed surveillance units they believed to be drug dealers following them, the students pulled over and called police. Police said the money was then returned.

Osmanovic was ordered held on $100,000 bond on the extortion charge Tuesday. Immigration officials also put a hold on his release while they check his legal status.

Asked why Osmanovic would make up a story about her being involved in an extortion plot, Gray said, "Because he's a criminal."

"He came in and tried to extort $50,000 from me and tried to take me and did take me," she said to reporters. "I would never try to take money from my husband."

Gray initially refused to take a polygraph test, according to the report. However, she took one three days later and failed, the report says.

According to the report, Gray and Osmanovic stayed at a hotel on Emerson Street near Philips Highway while police were searching for Gray.

Attorney For Quinn Gray's Husband Speaks

As Sheriff David Shoar mentioned Wednesday, Quinn Gray's husband Reid Gray is considered a victim in this case.

He is not charged with any crime, but he has hired an attorney who released a statement Thursday.

"Mr. Gray is deeply troubled by the recent events that have taken place," Reid Gray's attorney Chris White said. "At this time, Mr. Gray's sole focus is on the care and well being of his two daughters."

Gray through his attorney thanked the investigators involved in his wife's case.

"In light of the situation and his concern for his two daughters, Mr. Gray respectfully requests that the media respect his family's privacy during these trying times," White said.

When White was asked if Reid Gray plans to bail Quinn Gray out of jail, White said, "That is a question that remains to be seen."

White said that Reid Gray needs time to make some difficult choices.

Even though Reid Gray is not charged with a crime, White would not say why he had been hired.

Ex-Girlfriend Says Osmanovic Is 'Victim'

Jasmin Osmanovic is also charged with extortion, but his ex-girlfriend, Cali Bowers, told Channel 4 she believes he is actually a victim.

According to the offense report released Wednesday, the sheriff's office got a call Tuesday from Osmanovic's ex-girlfriend, Cali Bowers, saying she found possible evidence in their home in Jacksonville Beach. Bowers found a digital recorder in a dresser drawer.

According to the report, she said she listened to the recording and it was Osmanovic and another woman having sex and talking about a "fake kidnapping."

Bowers said she heard the woman going over her "story." She gave the tape to Osmanovic's sister, Velida Osmanovic, according to the report.

Velida then had her attorney, Robert Willis, call the police, and they brought in the evidence, according to the report.

Police listened to the recording, which also contained multiple conversations including what appears to be a rehearsal by Gray and a conversation in which Gray is angry because media coverage doesn't say she was definitely kidnapped, according to the report.

Bowers said Osmanovic secretly recorded he and Gray's conversations to protect himself.

"He did it to protect himself, and it's a good thing he did it, otherwise he'd be the only one sitting in jail," Bowers said.

She said the recordings tell the story of a man who just wanted to help a "tortured" housewife.

"He was trying to help," Bowers said. "I know it sounds really crazy, but he was trying to help."

Bowers said she is still roommates with Osmanovic, and after visiting him Thursday morning, she said he was doing better.

"Better now that she's obviously been arrested and the truth is actually coming out," Bowers said.

Bowers said she believes Osmanovic was manipulated. He told police he was saving Quinn Gray from her cheating husband.

"She just made herself seem like a tortured soul and she had a tortured family," Bowers said. "She just seemed like her husband, I guess, was not a good person. Obviously that's not the case, and (Osmanovic) didn't know that."

Bowers said the digital recording will help Osmanovic's case because it shows he was not the mastermind.

"He's an honest straightforward man," Bowers said. "He's just got a heart of gold. And unfortunately, he got stuck up in a bad, bad situation."

Co-Workers Surprised By Osmanovic's Arrest

On Thursday, Channel 4 went to the place where Osmanovic worked and talked to people who know him.

"It's hard to believe -- extortion?" said Chris Linsangan, who works at the car repair shop right next to where Osmanovic did. "He got involved with the wrong person I guess."

Linsangan said their co-workers started to suspect something was up when they started seeing police.

"I would say at least six, seven cars," he said. "They were surrounding the area and asking people a bunch of questions. That's all I saw."

The Southside auto repair shop became part of the investigation, and police said they found evidence inside.

The police report even said Osmanovic and Gray had sex there.

People who know Osmanovic said he didn't act like anything was wrong. They also said they've never seen Quinn Gray.

"He acted like everything was fine," one of Osmanovic's co-workers said. "(I) had no idea this was going on. Normal as can be."