From the News:
"The alleged crimes began late last year when the two young men took advantage of a flaw they had discovered in the MySpace Web site in order to obtain personal information on MySpace users, the district attorney said.
MySpace discovered the intrusion earlier this year and blocked it. The Los Angeles-based company also reported the incident to authorities. During the course of the investigation, threats were made that unless $150,000 was paid, new exploit code would be released, according to the statement.
By this time, the sting operation had been set up, so instead of meeting with MySpace late last week, the pair from New York met with undercover officers from the U.S. Secret Service and the Los Angeles District Attorney's Bureau of Investigation. " (ZDNet)
From their lawers:
Two teenage Long Island computer programmers were trying to land a job with MySpace.com, not trying to extort the Web site, one of their attorneys said Friday. The popular social networking site improperly lured Saverio Mondelli, 19, and Shaun Harrison, 18, to Los Angeles with the prospect of a consulting contract, said Mondelli's lawyer, Michael Dowd of Manhattan.
And when they arrived in California last week and sat down for a business meeting with what they thought was a contingent of MySpace employees - who were actually Secret Service agents and local detectives - they were arrested without warning, Dowd said.
"The proposition to hire them as consultants was made by MySpace," Dowd said. "This was a naked attempt to lure them into the lion's den and to somehow make an allegation of impropriety against them." (SpyFuse)