Wearing a body wire and accompanied by an undercover officer during a June 26 meeting, the landscaper told Horman he wanted $10,000 or he'd go to authorities with the alleged murder-for-hire plot, The Oregonian reports.
Horman, the stepmother of missing Oregon boy Kyron Horman who has come under police scrutiny, cut off the conversation fairly quickly, sources tell the paper.
The Oregonian also reports that police informed the 7-year-old's father, Kaine Horman, of the landscaper's account, which authorities deemed credible and serious, the same afternoon of the undercover operation. Kaine has since moved out of the couple's home with their 19-month-old daughter and filed for divorce.
Teri was also served with a restraining order that forbids her from contacting the family.
Sources previously told the local newspaper that the former elementary school teacher denied the murder-for-hire allegations when officials confronted her.
Though investigators say a break may be imminent in the case, Kyron's biological mom pleaded with Terri this week to "do the right thing" and cooperate with police in the investigation of the missing boy.