A few days ago an app called Secret SMS Replicator launched on the Android Market, and it could secretly forward your SMS messages to another phone. Google didn't like this and it has already removed it from the Market.
Because the Android Market is much more open than Apple's App Store, sometimes stuff like this happens. An app with a malicious intent comes into the Market. However, Google has been quick to block these types of apps so far and even if very rarely one of them escapes, it usually doesn't last long until it's banned from the Market.
In this case, Google says that the app violates their Market policy, which I'm sure it's true. I don't think the wrong doing is in the app forwarding texts. I think the wrong part is where they were sending them *secretly*. This could've created privacy problems for many Android phone owners.