i'm jon scott. thanks for watching. we'll see you again next week. >> gregg: i'm gregg jarrett. welcome to america news headquarters. >> heather: i'm heather childers. the taxman has been served. chairman investigating the irs scandal serves subpoenas to the treasury department to hand over more documents. we'll have the latest,. >> gregg: hundreds of spectators getting up early to see this controlled plant implosion when something goes horribly wrong sending

shrapnel flying toward the crowd. >> heather: press may have to rely on one key man in the case against aaron hernandez. what he might know that might make the difference in this case of execution style killing and betrayal. >> we begin with a fox news alert. new urgency concerning the threat of an al-qaeda terrorist attack now being called, quote, very specific by a leading republican lawmaker. the security concern trigger triggering a worldwide travel alert and closing of 17 embassies and five consulates. this is the scene in yemen. heavily armed soldiers standing guard outside the u.s. embassy checking up checkpoints and blocking roads. this is one example and now sunday in bangladesh making the u.s. embassy there the first to officially close a

short time ago. shutting 17 embassies in shot spots across the middle east and north africa. they say they may be closed longer depending on the danger. let's go right to molly henneberg who is in washington for us with the latest. molly, what have we heard from the white house today regarding all of this? >> molly: white house says president obama was briefed this morning on the al-qaeda terror threat and will continue to get updates throughout the weekend. the "new york times" reports today that the u.s. has picked up increased chatter between senior al-qaeda operatives indicating a terror attack could be carried in and out coming days. tomorrow is president obama's birthday and also the day the new president of iran should be sworn in. for those reasons, the timing could be significant. >> you always to have watch out when you are getting close to september 11th because that is big dated for them. it's also a factor, the

period of ramadan, a religious holiday of great importance also plays into the desire to make a splash at this point. >> molly: on capitol hill peter king says there is very specific information there is a plot, but it's not clear where it is aimed. >> heather: at the same time the focus seems to be on yemen. >> molly: that is where al-qaeda and the arabian peninsula is based. yes the focus is on yemen and all of the arabian peninsula. plot could be planned there or carried out there. according to one fox news military analyst. if al-qaeda groups had been linking up, the threat is not limited to that area. >> they can threaten wide areas of the world. american interests in wide areas of the world. we learned in benghazi what

happens when you don't send out threat alerts. this is a prudent think to do. >> molly: britain, france and germany also have closed their embassies in yemen tomorrow. >> heather: molly henneberg reporting live for us, thank you. mill and the groups in the muslim world want us out of the middle east and they got it. policies the fact this has happened. we will discuss that later in the hour. >> gregg: the international police agency known as interpol issuing a global security alert. this comes after several cases of mass prison breaks around the world. french based police based agency saying al-qaeda may have been involved and is working now with all of the member countries to determine if the prison breaks may have been coordinator linked. also in the middle east,

growing tension in egypt. authorities again warning supporters of us on ted president mohammed morsi to abandon their camps but they say they will not leave until he is returned to power setting the stage for a showdown with security forces. conor powell is live in jerusalem. >> they are trying to clear out pro morsi supporters. both times they failed and killed dozens in the process which has inflamed the situation in egypt. both sides have taken a hard line, refusing to give an inch. international pressure now from the united states and european union does seem to be changing the tone in egypt. today secretary of state william burns met with senior officials and members of the muslim brotherhood and chuck hagel spoke to egypt's

defense minister. hard lobbying seems to be paying dividends there may be showing flexibility. two sides are talking and to some extent negotiating. 300 people have been killed in egypt since top military commander there since morsi was removed. they blame him much of the bloodshed it would reject any agreement with the new government if it includes the general alzizi and the fact they are step forward as a positive change, it remains a deeply divided country and there are still a lot of issues that have to be worked out there. there are a lot of signs that both sides are very far apart. they are negotiating with other things is seeing as a positive sign. they are going to continue

pressure both sides to work out some kind of agreement. >> gregg: conor, thank you. >> heather: five spectators were injured after shrapnel sent flying. it was demolition of an abandoned plant in california. they were outside the 1,000 foot perimeters that subcontractors determined would be safe. one was wounded was a 48-year-old man he was taken to trauma center with a severed leg. four othersere treated for minor injuries. another story we're following, firing off a letter to treasury secretary jack lew accusing him of obstructing the investigation into the irs targeting of conservative groups. they have subpoenaed his department for more documents related to the scandal.

liz been prann reporting from washington. >> reporter: a key house committee documents, accusing secretary jack lew's agency getting into the way of irs targeting conservative groups. writing in part. we have repeatedly labeled the strategy of targeting americans for political beliefs as a, quote, phone have any scandal. it was two months since they first requested few documents, they have only produced a small fraction of documents. issa says it was largely filled with redactions. >> it's an important fact to get out. >> they are important facts to get out and you are obstructing them. >> the agency says they are not blocking the information. irs was planning on turning over 1600 pages of information. they asked about lois lerner

that refused to testify. >> every single email of lois lerner that we have, you sent to us? >> no, but we provided hundreds of her emails. again this is a process. >> no, no, no. it's pretty simple. you go to her computer and get her emails. >> the leaders of the senate and leaders of finance committee they want the irs to be more cooperative in releasing documents. >> heather: elizabeth prann reporting for us in washington. coming up later in the hour, a closer look at the irs scandal and what role if any the white house is playing. >> gregg: some extreme weather in midwest. parts of a montana town recovering from major wind tornado. it toppled trees and knocking out power.

witnesses say they are fortunate fortunate that no one was hurt. >> there was a lot of leaves and branches flying through the air and it could be the beginning of a tornado. >> we almost got blown away. >> scared, yes. >> gregg: janice dean is live? >> we'll give you up to date any watches or warnings but we could see a repeat performance of severe weather in areas of monday monitored. rockies and high plains. that is the area that we are shaded in yellow where we could see the risk for hail and damaging winds, isolated tornadoes, as well. we'll keep you up to date so you can react accordingly. potential for flooding, inches of rain in a short period of time across the midwest. we have flash flood watches and warnings posted for areas

like iowa and kansas and missouri where they received four to six inches in a very short period of time. unfortunately we're going to see more rain in this vulnerable area over the next 24-48 hours. we'll keep you up to date on the flooding potential. remember dorian. we were tracking it week and a half ago, it has resurfaced and it's a depression and not expecting any major impacts across the but you can see this around the east coast of florida. good news is dorian is going to stay mainly offshore, but we could get the potential for several inches of rainfall across the sunshine state. lot of these areas have received incredible amounts of rain over the last several weeks. we will monitor it. heavy rain along the coast next 12-24 hours. good news this one stays

offshore. >> heather: planning on going to a football game. n.f.l. starting a new clear bag policy for fans. new rules kicks off tomorrow at the hall of fame introductions in canton, ohio. fans will not be able to bring backpacks or large bags. only bag can be carried must be made of clear plastic or vinyl or pvc and size is also regulated. read the full details on their website. >> gregg: i guess it makes sense. you are not going to believe this. an absolutely enormous sinkhole opening up in a field here in the united states. we'll tell you exactly where it happened.

>> there is no oil wells around here. there is no irrigation wells anywhere around here. this is something that just happened. >> heather: plus the company that helped edward snowden to get his security clearance now under investigation. what a federal grand jury hopes to learn. >> gregg: and major comeback for a new york soccer team that included the legendary pela. >> the field is ready. less than four hours, soccer fans, cosmos takes on the strikers right here in long island. we'll have that. ♪ mom always got good nutrition to taste great.

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new york, los angeles, dallas and several other cities. look at this gigantic sinkhole, opening up in the middle of western kansas. the hole is 200 feet across and 90 feet deep. >> escalating battle between the g.o.p. and the irs, congressman darrell issa issuing a subpoena for irs documents regarding its scrutiny or targeting of tea party and other conservative groups. what is the white house's role if any in this political wrangling. let's bring in jamie weinstein. good to see you. is this a significant escalation? >> i think it certainly is significant escalation. chairman issa does not think he has been appropriately

dealt with in getting documents. he wanted 81 search terms. i think they only looked up 12 of those terms of the documents he's gotten, a lot of them has been redacted. this is not just a republican saying this. the senate finance committee max baucus issued a statement on friday as well saying he doesn't think the irs has been as constitute i have he would like. there is both sides, members saying they are not particularly happy. >> gregg: they want emails and other documents that are relevant from three people in particular. lois lerner, holly paz and william will dense. here they are. lerner infamously clammed up taking the fifth. paz i believe was placed on administrative lead. will dense is chief counsel.

he is a big donor to democrats and apparently he started insinuating himself of getting in the targeting in an election year. does that raise pretty big red flags? >> certainly his office did. it was a big to do when carter hull who is a long time attorney who recently retired from the irs that tried to vet these tea party applications. he was told by lois lerner they would have to submit the applications to the office of the chief counsel for review. the office is headed by will dense who is one of two critical appointees from the obama administration. he is a big democratic donor. we don't know if will dense himself was involved but -- wilkens himself was involved. the president calls it a phony scandal. what we know already is

scandalous. the fact that tea party groups were targeted to begin with. the point is we don't know yet how far this goes up. that is the point of the investigation. how do we know it is phony unless we actually have an investigation. get the emails of wilkens and so on. >> gregg: the whole cover story, just a few rogue agents in cincinnati that was proved to be a deliberate lie and cover-up. then you have people taking the fifth to avoid incriminating themselves. i don't know, maybe that is a sign phony scandal sign of just how worried the white house and the president really are? >> that is very possibly. as you mention. this whole idea that it originated from a cincinnati office, the first story they gave, has been completely disproven. we know that washington was heavily involved. the president can go around and call it a phony scandal

all he wants, but the point of the investigation is tiond out what is going on. the idea that nothing has been tied directly to the white house or chief counsel is kind of irrelevant if you don't have an investigation to look if there is something there and it will probably be hidden. >> gregg: what is especially suspicious to people, especially lawyers, there was page after page is handed over but they are blacked out, they are redacted. then, of course, the alleged stonewalling of lois lerner's emails. that is the government's property. i talked to guy and you could do several years of emails in half a day. print them up and send them on over. yet it hasn't been done. it's curious, isn't it? >> it is. what is intriguing to me. you would think the president, if he believed there was nothing there, but the

appropriate path would be to stay out of it. let the investigation going forward. instead of calling them phony scandals when we haven't had a couple months of actually digging into this. most of the documents haven't even reached issa yet. i would think he would say let's get everything out there to prove that nothing went on. instead he is casting judgment on investigation what is ongoing. >> gregg: jamie, good to see you. >> heather: new york soccer team was one of the best in the world boasting the talents of pelau and now the team is looking to make a major comeback. live from new york with details. hi, brian. >> just a few hours, soccer fans will be filing in to see the new york cosmos for the

first time in 30 years. it's an iconic comeback for a franchise that helped promote soccer in the mid 1970s. 40,000 fans would watch pelau. they acquired the soccer legend making them the most glamorous team in world soccer. within ten years, cosmos were all but finished. attendance was down as interest in soccer plummeted leaving them no choice to leave. cosmos are back and elau is honorary president. he helped light the empire state building green earlier this week. >> i wanted to let all the people know, to come back now because we are here again. >> reporter: team has an a.m.

byrnes plan, to build a $400 million stadium. they plan to make an massive boost for the area. >> we certainly believe we get a stadium built we will be able to attract big stars to new york. we can recapture some of that magic again. >> reporter: the steam playing in his for i can north american soccer here. they hope that pele and history will bring fans to the game but ultimately a winning record will help most. >> heather: thank you. >> gregg: thousands of dangerous criminals could soon be set free. coming up, why one state is on track to release 1 convicts. is the public at risk? >> heather: and what about this? happy hour at the post office.

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♪ >> heather: welcome back the bottom of the hour, time for top of the news. a terrorist threat triggering a worldwide travel alert.

heavily armed soldiers standing outside the embassy in yemen. closed today as precaution. >> 19 people killed in iraq including an ambush on an a convoy. surge in violence sparking fears of turn of widespread killing. >> william burns hoping to head off more bloodshed in egypt as he meets with both sides of the political divide. this as security forces prepare to move in on sit-ins of us on ted president mohammed morsi. state of california now expected to release about 10,000 convicts by the end of the year. the united states supreme court refusing to overturn a lower court order to ease prison crowding. but california officials are warning the decision could put the public at risk.

dominic is joining us live from los angeles. >> public safety absolutely the concern. california is already packed the low risk prisons and ones they've got left really the most dangerous criminals there are. that is why people in california don't like the idea of is a seeing 10,000 being allowed to go free. supreme court ruled back in 2011 that california had to reduce chronic overcrowded, governor jerry brown has raise add red flag that more releases would unleash dangerous felons upon the public. he has been pressing for a delay but the supreme court ruled back, it was may that conditions here really violated the eighth amendment that is cruel and unusual punishment. here are some numbers. 122,000 inmate says what we have here in california. state reduced the prison population by 46,000 in the

past six years. in the past six years or so as well as 30% above capacity but the supreme court were divided on the decision to force california to release more inmates. justices have been split on the issue after the ruling, anthony scalia the most radical decision issued. jerry brown says he is going to appeal and if he does, that could delay the release somewhat, will it do long term? >> gregg: thanks. >> heather: u.s. postal service looking for new ways to bring in money. it's directors think maybe shipping booze might be one answer. problem is there is is a law on the books preventing that from happening. how much would shipping

alcohol help the post office get back in the black? go joining us is cal harrington, founder of harrington capital management. happy hour at the post office we called it earlier. they estimate the postal service this would bring in $50 million annually. is that enough to save the post office? >> not even close. in fact, last year the post office estimated they lost $16 billion. 25 million dollars a day. this is very interesting topic because here is an example where the u.s. post office was set up to be able to run as a private business with congress's oversight. problem is you have congress intervening quite often with mandates with respect to retirees, pre-funding healthcare for 75 years in advance for retirees. what happens as you know

profitability will dry up very quickly. the ability to have solvency within the post office becomes difficult. what they decide to do is try and find other ways to incorporate revenue. >> heather: that begs the question and people wonder, unlike other federal agencies that depend on tax dollars, why is the post office expected to run self-sufficiently? >> they have not received any tax dollars since the 1980's. it was set up constitutionally to run as a private business. however, it's not being run as a private business. now you have competition with ups and competition with fed ex and electronic communication. the thoughts maybe we won't deliver the mail on saturdays. what would that do? then if we were talking about beforehand, having a line that the postal service to

increase revenues and what is prohibited by the constitution is delivering alcohol. united states postal service being able to deliver alcohol. >> heather: trying to come up with creative ways to make from hemorrhaging this money. one estimate is postal service said that they need to save $20 billion by 2017 to prevent a taxpayer bailout. >> the way to do this, the way to begin doing this is looking at the expenses. looking at the fact that you can't pre-fund retiree health care 735 years in advance -- 75 years in advance. to look at the united states postal service as what it was intend to look like as more of a private business, run privately and get the expenses in line which with competition has diminished

revenues for the united states postal service. it's being associated with other private businesses. >> heather: thank you for joining us. we'll see if the postal service delivers booze or clothes. rain and heat and snow line, something like that in specialty stores. would you wear that. >> no. looking to plug holes in aaron hernandez, legal panel is here to talk about it. what does it mean for the murder trial of the former n.f.l. star? ♪ hey linda! what are you guys doing? having some fiber! with new phillips' fiber good gummies.

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harry. kate and newborn prince third in line to throne are still said to be at her parents' house. just in case you were wronged, gregg. >> gregg: former n.f.l. star aaron hernandez. several searches for the gun used to kill odin lloyd has come up empty so far and there is no eyewitnesses to the murder other than those who may have been involved. prosecutors believe two suspected accomplices may have the answers. let's bring in legal panel. david swarlts defense attorney and richard paul who is a defense attorney, as well. david, let me start with you. this guy ernest wallace you may have flipped or in the process of doing a deal? >> for cooperating witness to cooperate you don't necessarily know about it in the beginning. many times we find out about

it after the fact. so i believe wallace doesn't have a choice in this case. he is going to be squeezed. if he doesn't cooperate he will be charged with the murder. even if he is not the shooter he is 1% liable for the murder. >> gregg: you don't think wallace has flipped? >> prosecution had a probable cause hearing. they delayed the hearing. wallace has no reason to flip. there is no fingerprints or gun. all the police have found the casing of a .45 shell the victim was shot with but that doesn't say hernandez murdered the victim. >> gregg: there is a lot of incriminate evidence toward hernandez. you got cellphone communications. you got cellphone video and sister placing the victim with aaron hernandez. then you got dna evidence, blue bubble gum that may

place him literally next to the body. >> the question does that then prove that hernandez committed the murder or wallace or ortiz. nothing ties hernandez to the murder. >> gregg: he is the shooter, they prosecutors put all of three of them at the murder scene at the time of the murder they are all acting in concert. >> we were talking about that. when you get to sit back, cross your arms and let the three of them fight it out, that is a lot of fun. that could take place. >> gregg: another problem with one guy flipping against another, snitches with career criminals get beat up by cross-examination over credibility issues, that is consideration, right? >> absolutely. credibility is key in every

single case. the witnesses' credibility and ortiz's credibility will be challenged. >> no doubt. in this situation, you can always place all three with the victim. you have a lot of evidence instead of altogether. even a snitch has more credibility because of the other circumstantial evidence. >> gregg: trouble for prosecutors, hernandez has been paying wallace's bills. so wallace is loyal and may not want to flip. should a prosecutor step up the charges against wallace. >> squeeze wallace. they are going to put the heat on him. the legal fees are going to be least of what is on his mind. once they charge him with that murder, they could charge them both and hang it over his head. >> and wallace flipped, legal bills are being paid by hernandez, maybe they are looking to see if he

committed murder. >> gregg: they may be going hernandez for the boston double homicide case, right? >> they may be. they still need evidence for that, too. >> absolutely. like i said in the beginning, wallace is cooperating the fact they haven't charged him with the murder. >> we'll see august 22nd is the probable cause hearing. >> gregg: i like the act in concert approach. >> that is the best approach. >> there is a murder. >> gregg: they are all going to be tried together. we can put you there. there is a plethora of evidence. >> none of them are angels. >> gregg: david, richard, thank you very much. >> heather: still to come the u.s. pulling a disappearing act in the middle east after a terror threat leads to the closure of embassies across the region. our president obama's policies partly to blame for the situation? we'll have a closer look up next.

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♪ >> heather: terror alert from al-qaeda forcing many embassies and consulates to close this weekend. a u.s. intelligence calling the threat serious and

credible. u.s. government is virtually closed for business in much of the muslim world. take a look at this map. the shutering of 17 embassies across the middle east and north africa. such an exit has been a long time goal of many muslims. is president obama's foreign policy to blame? richard grenell served as a ambassador to the united nations. >> thanks for having me. >> militant groups they wanted us out of the middle east and because of the threat, they got what they wanted. is this an appropriate response to the threat? >> you know, i don't think so. it seems a little bit crazy to think that we clearly have some sort of intelligence showing some serious issues that are developing. the administration is right to act, but telling the

entire world exactly what our plan is to try to foil these attacks by setting down -- shutting down 22 embassies seems like the same type of decision that we made in iraq when we started to tell the enemy when we were living. you don't give away plans to the enemy and tell them what you are doing. this decision seems like the first big decision from susan rice who as you know was the u.n. ambassador. she wanted to be secretary of state but we found out she was unconfirmable. she was not going to become secretary of state because too many senators thought she wasn't qualified. what president obama did, put her in charge of national security. that has a lot of people very concerned about this big decision that susan is making. is this an overreaction and telling our enemy exactly what our plan is? is that the right thing to

protect americans? i think not. >> heather: clearly she would not be making this decision on her own. leading to the next question, do you think president obama's policies in the region are the reason this is happening? >> there is no question we have signaled from the very beginning we are going to look the other way when al-qaeda is doing something. barack obama al-qaeda was decimated. what we really found out in the last several weeks, not only is al-qaeda not decimated but al-qaeda is very much alive it's actually detroit that is decimated. >> and in last may, he said osama bin laden is dead and most of his top lieutenants. there has been no large scale attacks on the united states and homeland is more secure. in summary, we're safer

because of our efforts, but would you say that is not true? >> i think what we've seen from this administration is a willingness to look the other way. we pretend like al-qaeda is on the run. it's not just benghazi that we saw these problems in. mali has been developing as a strong hold for terrorists for quite a long time. the french are the ones who actually had to step up and do something bit. the united states was unwilling. you know it's really bad when the french are leading the charge and the united states is pretending there is no war to fight. >> heather: and this threat is focused on yemen, why? >> that is also a hub right now. there is probably some very real intelligence. we obviously are not privy to that intelligence, but those who are understanding that on daily basis have to make the decisions. i don't have a problem with trying to react to shut down

an embassy or consulate to protect americans. that actually should be done. describing our plans to the enemy seems really childish. is there anyone in sc how intelligence is gathered? with susan rice, her first big decision is puzzling. >> heather: al-qaeda and yemen, they were responsible for three attempted airline bombings targeting the united states over the last several years. and timing of all of this. tomorrow is president obama's birthday and iranian president will be officially sworn in. what about the timing? >> i don't think it has to do with either of those. ramadan ends on wednesday. when you combine that with a lot of intelligence over the last couple of weeks, again you see iraq spiraling out of control. i think the timing is more

about the ending of ramadan. >> heather: also closing the embassies and consulate, 22 in total, also this warning going out to travelers through the entire month of august. >> again, it goes back we can't close our embassies for an entire month. we can react accordingly and individually when we have specific intelligence. across the board closing just for a day or two and then telling everybody about it.... >> heather: okay, thank you so much. >> gregg: "cavuto on business" is coming up. i'll be back in two more hours with top stories. see you then.

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>>. >> neil: ongoing mess at irs is phony scandle, why is it so messy. i'm neil cavuto. and on top of president staying on top of this message. >> so far for most of us here, we have seeing an endless parade of distractions and political posturing and phony scandals. >> neil: how about an endless parade of new revelations involving those same scandals like this one at the irs. new emails released this week by congressional investigators suggesting that lois lerner may have been sharing taxpayer information with folks the