Newsday from New York, New York • 28

r- v1 fy' Jvv ii i -wrtiSi' j'iA id EB Friday: 1027822 UP: 3014 tm MTW Court Win for Illegal Music Downloads TK A28 10-DAY DOW TREND is whether it will appeal to the UJS Supreme Court RIAA president Cary Sherman called the decision with the views of Congress and the lower court and said the most recent ruling will prevent the music industry from notifying suspected file-sharers ahead of filing suit against them Verizon associate general counsel Sarah Deutsch said the decision knocked down a dangerous procedure that threatens traditional legal guarantees and violates their constitutional In its ruling the court said that conditions of the law apply to Verizon because the infringing material was stored on computers and not on own servers That the Internet subscribers were using servers to trade files enough to warrant the subpoena The court said it sympathized with the music for legal tools to its copyrights but explained that not the role to rewrite the law has said that 220 people have settled While the appeals court decision means nothing for those already sued it does make it more difficult for the record industry to identify others it suspects of online piracy said Megan Gray a Washington DC attorney who specializes in intellectual property Before under specific provisions of the law music industry attorneys simply had to ask a UJS District Court clerk to issue a subpoena without requiring a signature to the ISP for the identity of anyone they suspected of copyright infringement you have to present arguments to a judge who will have to evaluate the merit of the arguments before learning identity and the way it should said Gray who on behalf of several interested parties submitted amicus curae briefs in support of Verizon the ISP named in the suit Despite the setback the RIAA said it will continue to file suits but the industry group has yet to decide By Monty Phan VTAFFwarreR A federal appeals court has Bounded a sour note for the recording industry The UJS Court of Appeals for the District of Columbia ruled Friday that the music industry could not compel Internet service providers to provide names of customers suspected of sharing and downloading copyrighted song files dealing a significant blow to record companies' fight against piracy The three-judge decision overturns a District ruling that the Recording Industry Association of America could use subpoena provisions under the Digital Millennium Copyright Act to force ISPs such as Verizon to hand over the names of suspected online music pirates As a result of the District Court decision the record industry filed 382 lawsuits since September and sent notices to another 398 people that they may be sued The trade group A 4 a-'- I--4 A-'l short cuts: -I -I- Feds Charge 6 in $L0M Bank Fraud Janus To Repay $31M From Trading cent of the US toy business' has down payments to its an industry source said John Reilly a company spokesman declined to comment Friday The move is likely to make suppliers reluctant to ship new goods to the chain K-B joins FAO Schwarz and other toy specialty companies among the losers in the struggle against discounters like Wal-Mart Stores Associated Press MARKETS STOI OPTIMISTIC The Dow Jones industrials and the Standard 600 index notched a fourth straight week of advances after a day of mixed trading Friday when optimistic investors started to wonder whether stock prices were getting a bit high The Dow Jones industrial average dosed up 3014 or 03 percent at 1027822 for a four-day gain of 255 points The blue-chip average finished Friday at the highest level since May 17 2002 when it stood at 1035308 But the broader market finioViwH lower The Nasdaq composite index declined 5 16 or 03 percent to 195102 And the Standard Poor's 500 index fell 052 or 01 percent to 108866 On Thursday the index rose to its highest dose since May 23 2002 Associated Press employees of Abacus Federal Savings winch made news in April when reposts of employee embezzlement caused! a run were charged Friday by federal authorities with defrauding the bank and its customers of at least $10 million One employee Carol 1 of Sunset Park Brooklyn a vice president of the six-branch Chinese community bank also had been charged in a separate complaint in April with embezzling at least $1 million The employees who worked at the Canal Street or Bowery Street branches were charged by the UJ3 office in Manhattan with conspiracy to defraud the bank and customers in the two years that ended in April Federal officials said the defendants withdrew money from customers accounts siphoned money that customers were attempting to deposit into their accounts took steps to prevent customers from learning that their accounts were short including falsifying paperwork and tried to interfere with a bank audit of its Canal Street cash vault The other employees charged Friday were identified as Yin Mei Ku of Brooklyn head teller at Canal Street Christopher Chan of Brook lyn a teller at Canal Street Tuen Man Boon of Brooklyn supervisor of check processing at Canal Street Esther Yip of Brooklyn head teller of the Bowery Street branch and Kim Diep of Elmhurst an assistant manager at the Canal Street branch Bank officials were forced to hand over at least $30 million to panicked customers during a three-day period in April in a Depression-style run on the two Chinatown branches and another in Flushing- Incan talupo MONEY-UUMDEMm PLEA Former Merrill Lynch Co chief energy trader Daniel Gordon pleaded guilty on Friday to money laundering and wire fraud admitting he embezzled millions of dollars in 2000 from Merrill The charges against Gordon 27 include wire fraud money laundering and violations of federal record-keeping laws his lawyer said Gordon is trade between MerrilfandT artrff-shore company Falcon Energy Holdings SA that he incorporated Gordon feces up to 20 years in prison Bloomberg News K-l TOYS ON THE ROPES? KD Toys Inc winch accounts for about 5 per THE ASSOCIATED Janus Capital Group Inc said Friday it will pay bade $315 million gained from questionable mutual fund trading arrangements that have led to investigations by state and federal regulators Janus said it had not determined whether toe money will be placed in funds affected by market timing a strategy under which investors make quick in-and-out trades or whether it will be given directly to shareholders Market timing illegal but many mutual fund managers say they allow it because it may hurt profits for long-term shareholders The Denver-based company also announced tighter controls on mutual fund management including naming an independent director as its chairman a job that had been expected to go to chief executive Mark Whiston Janus said none of the changes affects investigations by regulators and prosecutors including New York Attorney General Eliot Spitzer the Securities and Exchange Commission or the Colorado attorney general Last fell Spitzer announced a settlement with the Canary Capital hedge fund and said it had improper trading agreements with Janus and three other fund groups Janus also announced the results of an investigation into market timing by the accounting firm Ernst it Young which found that 10 investors were allowed to trade more frequently than other investors between -November 2001 and earlier this year Janus baa said that anyone involved has since left the company The $315 million payback was determined by Ernst Young hired to determine the effect of market timing to shareholders and to recommend internal controls Purchase Boosts Midtown Tower Plan By Tania Padgett bank purchased the two parcels for about $46 million which cornea to about $384 per square foot The bank plans die skyscraper to go up at 42nd Street and Sixth Avenue to serve as its New York headquarters the spokeswoman said The 50-story 21-million-square-foot office tower will likely cost $1 billion The building will be on the same block as the 48-story Conde Nast Building Developer Douglas Dursf plans to build a skyscraper in midtown got onto sure footing this week when he bought' two parcels of fend on a block near Times Square that would give him the real estate he needed for the project sources said Durst is partnering with Bank of been long and difficult reportedly almost falling apart over pricing Durst bought the land from a group that includes Joseph Bernstein Rafi Morris Nasser and Rafi Albert Nasser a source confirmed Durst also plans to buy a third parcel at the southwest corner of 43rd Street and Sixth Avenue a source confirmed father Seymour Durst the family's first property on Seafood Restaurant in 1967 i America Corn to build the tower and help pay ferine fend purchase bankj (that Durst built in the fete 1990s Spokeswoman said Durst and' the The negotiations for the land have.