Chris Brown a victim of extortion by Malcolm Ausbon after a basketball incident?

Could Chris Brown do anything else wrong? MStars has learned that the singer is the victim of extortion. 

Malcolm Ausbon filed a lawsuit again the "Don't Judge Me" singer, claiming that Brown and 3 of his pals beat him up while playing a basketball game at 24-Hour Fitness.

TMZ is revealing a letter Ausbon's lawyer sent to Brown's lawyer, Mark Geragos, demanding $250,000 from the singer or there will be a price to pay. The lawyer stated if Brown refuses to pay, "Mr. Ausbon is placed in a position by the LAPD where he needs to decide whether he will press charges."

The lawyer added, "He would rather be compensated." Brown's lawyer claims that is extortion, and plans to file a police report. 

For the record, a lawyer that works in Geragos' office says the he met with Ausbon's attorney last summer, and said the singer never laid a hand on his client. 

Geragos' lawyer also mentioned that the guy who needs to be questioned and charged is a man who had dreadlocks, and the proof; it was all on video.