Rights group takes British spy agency to court
Civil liberties group Liberty said there was “a reasonable likelihood” that GCHQ, MI5, and MI6 spied on its members
http://www.guardian.co.uk/world/2012/jan/19/fake-rock-plot-spy-russians
The old story from 2006 is here.
http://www.washingtonpost.com/wp-dyn/content/article/2006/01/23/AR2006012300738.html
I bet the guys who said this was a made-up story are feeling foolish.