David Hans Schmidt, best known for arranging the sale of celebrity sex tapes and nude photos, was taken into custody at an undisclosed location in West Hollywood Tuesday.
An FBI spokeswoman, Laura Eimiller, said she could not discuss the charges against Schmidt because the case was under seal while further investigation proceeded.
Cruise's attorney, Bert Fields, told the media Schmidt approached the actor's representatives six weeks ago with photos from the actor's Italian wedding last year to Katie Holmes, and that they immediately contacted FBI.
"He was looking for money, lots of money," Fields said.
Thom Mrozek, a spokesman for the U.S. attorney's office in Los Angeles, said a judge set bond at 100,000 dollars.
It was not immediately clear if Schmidt had a lawyer or how he obtained the photos.
Cruise, 45, one of Hollywood's most bankable stars, married Katie Holmes, 28, in Italy last November.
Schmidt has also been trying to auction off Paris Hilton's diaries, along with photos of her in various stages of undress and other personal items that had been locked away in a Los Angeles-area storage locker until a few months ago.
Source: Xinhua/agencies
Mission: Impossible III
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