captioning funded by cbs and ford >> whitaker: welcome to the "mile high" city, where marijuana, long a symbol of the counter culture, now is just a part of everyday culture. it's a thursday night in downtown denver, and we were invited to a marijuana food and wine pairing catering to young professionals. you might expect to see the band toking up, but here everybody is. denver is the epicenter of a marijuana industry that is now in full bloom. this is not somebody's backyard. >> this is industrial agriculture, absolutely. >> alfonsi: super-storm sandy killed 117 people and caused more than $60 billion worth of damage in 2012.

and thousands of families that survived sandy say they havefraud. >> i was like, "how can you tell me that you're not going to cover this, that i'm not going to get the full amount of my insurance?" i says, "you got my payments every month." >> alfonsi: tonight, an investigation into why so many families didn't get the help they deserved and what is being done about it. so, are you going to make it right? >> kroft: very few actors have ever had a year like the one bradley cooper is having. >> hi! >> kroft: in hollywood, there was all the hoopla for his third oscar nomination in as many years for his performance in "american sniper". >> she's got a grenade. she's got an rkg, russian grenade. >> kroft: across the continent in new york, he was the toast of broadway in "the elephant man," where his life is a little simpler. no paparazzi, people don't bug you? no, they get... they get me on the way from where i live to the... to the subway station. but for some reason, they don't want to spend the $2.50 and ride the subway with me. so, i lose them in the subway.

>> i'm steve kroft. >> i'm lesley stahl. >> i'm morley safer. >> i'm bill whitaker. >> i'm sharyn alfonsi. >> i'm scott pelley. those stories tonight on "60 minutes." >> cbs money watch update sponsored by lincoln financial. calling all chief life officers. >> glor: good evening. the embattled c.e.o.s of deutsche bank announced their resignations today and will be replaced. netflix will launch in italy spain and portugal this fall, and it's believed the triple crown winner american pharoah could generate up to $100 millinion breeding fees. i'm jeff glor, cbs news.

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>> whitaker: visit colorado these days and you can smell change in the air. it's the scent of legal marijuana for recreational use. if you're a resident 21 or older, you can walk into a state-licensed store and buy up to an ounce of pot. tourists are limited to a quarter-ounce.

colorado has allowed medical marijuana since 2001. but in 2012, voters amended the state constitution to allow recreational pot, and gave the government one year to make it work. colorado's governor calls it the most ambitious social experiment of the 21st century. three other states also have approved recreational sales. but, as we first reported in january, none has gone further or faster into the legal retail weed business than colorado. we wanted to know how the experiment is going, so we headed to denver, the epicenter of a marijuana industry that's now in full bloom. welcome to the "mile high" city, where marijuana, long a symbol of the counter culture, now is just a part of everyday culture. it's a thursday night in downtown denver, and we were

invited to a marijuana food and wine pairing catering to young professionals. you might expect to see the band toking up, but here everybody is. the food is sprinkled with marijuana, the wine infused with a strain called "killer queen." budtender leo dunaev selected it for the evening. >> leo dunaev: because of the mellowness of the strain, there isn't any kind of anxiety attached to it, so that's why we have such a crowd of happy and fantastic people. and what we're doing there, with that machine, is... it creates smoke that is cooled to minus- ten degrees. and that smoke is then blown into this glass. and that allows the wine to open up and really bring in the fruit-forward qualities of it. >> whitaker: those who might remember pot from the '70s-- the marijuana grown and sold in colorado today is up to ten times stronger. there's a healthy appetite for the rocky mountain high, and no shortage of stores to supply the

demand. there's the corner store in denver... >> $1.73... >> whitaker: ...a high-end boutique in aspen right around the corner from prada and gucci. colorado has licensed more than 300 recreational dispensaries, ringing up $303 million in sales last year; $52 million in tax revenue. this is a lot of pot. this is industrial scale. >> meg sanders: it is. >> whitaker: how many rooms like this do you have? >> sanders: when we're fully finished with our construction we'll have 12 like this. >> whitaker: meg sanders is a new breed of cannabis c.e.o. driven to push marijuana into the mainstream. a suburban mother of two, she left a private equity firm to run mindful, a chain of four retail stores that sells recreational and medicinal pot. all of this is legal. that's just mind-blowing. >> sanders: it is. >> whitaker: meg, did you ever

think you would be here doing this? >> sanders: no, never in a million years. i was working in a small financial office, and there just wasn't a lot of upward growth. and what better opportunity than to jump into a fledgling industry, something that we'll never see again in our lifetime. >> whitaker: her 44,000-square foot marijuana factory is cutting edge. automated water and nutrient systems feed the plants. lighting mimics the seasons so plants can be harvested year round. all this in a warehouse right across the street from a denver police station. 60 mindful employees cultivate trim, and package up to 500 pounds of marijuana every month. this is not somebody's backyard. this is not some stoner's basement. this is a big business. >> sanders: this is industrial agriculture, absolutely. commercial... commercial grow

right here. >> whitaker: all of this still is illegal at the federal level. the justice department is watching closely. the feds say they won't intervene as long as colorado's recreational pot doesn't fall into the hands of kids or criminals, or cross state lines. with marijuana's growing acceptance in colorado, sanders says she's comfortable as a cannabis capitalist. >> sanders: i have a massive engineering feat for you. >> alijah smith: all right. >> whitaker: her 24-year-old son alijah works with her at mindful. she says parents at her daughter's middle school seem more curious than critical of her business. do you have any concerns that your job is sending the wrong signal to your 13-year-old daughter? >> sanders: i'm not concerned about that. >> whitaker: at all? >> sanders: i'm not. this isn't carte blanche-- "oh because i work here, everybody should have access to it, and that includes her." we have very good conversations about it. she knows. she knows.

>> whitaker: i mean, you say you're a business person. i think some parents would look at this and say, "she's just peddling drugs." >> sanders: i can tell you that the drug dealer... illegal drug dealer on the corner in any state in this nation isn't carding, isn't checking your i.d., isn't making sure you have a medical marijuana card or you're over 21. this industry does it every day- - the stats show it. we've done a phenomenal job. >> whitaker: mindful expects to rake in $18 million this year, but it's not easy money. colorado requires every plant grown by a licensed operator to be tracked from seed to sale. each one has a bar-coded radio frequency i.d. tag and is logged into a statewide database. cameras watch it all. the goal is to keep every bud and bit off the black market. greenwood village police chief john jackson isn't sold. >> john jackson: law enforcement is really trying to do the right thing here.

it's different, and it's requiring a mind change or shift on our part. >> whitaker: jackson is president of the colorado association of chiefs of police. he says there's still illegal pot on the streets from underground dealers who don't have to levy 28% in state taxes. >> jackson: there's a common belief that, by legalizing it, you will get rid of the black market. i can resoundly say that the black market is alive and doing well. >> whitaker: it's still cheaper to buy it from the... the dealer on the street than to buy it in the store? >> jackson: certainly. you know, we've created an entire industry here. and i'm going to be honest with you-- there are some very responsible people that are involved. and it's like anything else in society. you've got a few people that are really making it hard for the others, and maybe use colorado as a platform to simply provide their marijuana to the rest of the country. >> whitaker: this is what he's talking about. in october, denver police and the d.e.a. raided several

warehouse operations that were allegedly growing marijuana destined for out of state. neighbors nebraska and oklahoma are suing to have the u.s. supreme court declare colorado's recreational pot market unconstitutional, claiming marijuana is crossing their borders. it's too early to say if other problems are taking root. colorado is just now starting to collect and analyze data on pot's impact on the state. >> andrew freedman: i do worry about if we are irreparably harming colorado. and it's... it's something that will take years to suss out. >> whitaker: this baby-faced 31- year-old, andrew freedman, is colorado's marijuana czar. he's a harvard law grad, hand- picked by colorado governor john hickenlooper to oversee the rollout of legalized recreational pot. there is no roadmap. i mean, you guys are racing ahead at, you know, 1,000 miles an hour, and you're trying to work this out on the fly.

how do you do that? >> freedman: it's an unbelievable challenge. within one year, we wanted to get our culture up to speed. what is the right amount to imbibe or to smoke and drive? what's appropriate around kids? what's appropriate in public? and society had never weighed in on these things before. okay, anything else on caregivers? black market, gray market-- where we're going on it? >> whitaker: he regularly calls together the department he revenue, health, education-- all the state agencies involved with marijuana-- trying to balance the demands of the people with public safety and the law. it's legal here, but outside of colorado, it's still illegal. it's a federally illegal drug. how do you square those two? >> freedman: well, it is a round peg in a square hole. it takes everybody being creative in ways they haven't been creative before, and knowing that, at any time, the federal government could come

and shut us down, tell us that what we're doing is illegal in their eyes. >> whitaker: you still think that's possible? >> freedman: sure. it's completely possible that, in a few years, somebody comes around and says... a new president says, "we're not okay with you doing this." >> whitaker: they know they're under a microscope. that's why colorado was quick to act when it bit into trouble with edibles-- marijuana candies, cookies, and other infused foods. just three months into legalization, a 19-year-old college student visiting denver leapt to his death from a hotel balcony after eating a pot-laced cookie. the coroner's reported noted "marijuana intoxication" as "a significant contributing factor." >> freedman: i think one of the things we didn't see coming was that people were going to overdose on edibles. and we're not going to try to hide that problem. new rules and regulations came out faster than i think you ever see state government do something. >> whitaker: new rules placed immediate limits on the amount of t.h.c., marijuana's major psychoactive ingredient, allowed

in edibles, and required new labeling detailing the potency of each serving. but the biggest cloud over the industry is banking. as long as the federal government continues to count pot proceeds as illegal drug money, most banks won't touch it. so colorado's billion-dollar marijuana industry is conducted almost entirely in cash. that's why meg sanders keeps a two-ton safe. so, your payroll was in cash? >> sanders: payroll, rent... >> whitaker: taxes? >> sanders: taxes, licensing fees, home depot, vendors, you name it, our... our electrician, absolutely. >> whitaker: all in cash? >> sanders: absolutely. from a public safety standpoint, it's definitely the number one issue that this industry faces. >> john hickenlooper: if you want to guarantee that a fledgling industry becomes corrupt and... and, you know becomes populated with gang activity, make it all cash right. that's as old as al capone right. cash creates corruption. >> whitaker: colorado governor

john hickenlooper says a partial solution might be a new state- chartered cannabis credit union. he's urging the federal government to approve it. still, despite the problems, governor hickenlooper says he's encouraged by the rollout of this green experiment colorado voters wanted. in the beginning, you didn't think it was a good idea? >> hickenlooper: no, i opposed it, you know, and i opposed it and i think even after the election, if i'd had a magic wand and i could wave the wand i probably would've reversed it and... and had the initiative fail. but now, i look at it and i'm... i'm not so sure i'd do that, even if i had such a wand. i mean, i think we've made a lot of progress. and, you know, still a lot of work to be done. but i think we might actually create a system that... that can work. >> all right, i will have an eighth of that. >> whitaker: meg sanders says marijuana is good for business... >> that's pretty groovy, dude. >> whitaker: ...and good for colorado. are you seeing a marijuana effect on the economy here? >> sanders: absolutely. you can't find an empty warehouse in the city of denver, really.

i mean, you just can't. and then, think of the ripple effect. i mean, we affect a ton of businesses-- security, marketing, you know, web hosting. you name... we're a business just like anybody else. we have the same needs. >> whitaker: today, you can walk into a mindful dispensary and buy a joint like this for only $10. business is good. sanders is planning to expand. >> sanders: we're creating. we're saying, "please, trust us. we know that we can do this right." >> whitaker: i do remember, when this was rolled out, everyone thought that... that the sky was going to fall. >> sanders: it's still there. ( laughs ) it didn't fall. and business is thriving. and the customers are still coming through the door. so clearly, if i'm looking at my business and i'm looking at those around me, the consumer is saying, "yeah, this works." >> whitaker: since our story first aired, at least three more lawsuits have been filed in federal court to stop colorado's

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>> alfonsi: when hurricane sandy made its way towards the east coast in the fall of 2012, residents knew it could be devastating. what they didn't expect was just how bad sandy turned out to be-- 117 deaths, and damage estimated at more than $60 billion, second only to katrina. more than two-and-a-half years later, sandy victims have been hit by something else they didn't expect-- the storm after the storm. as we first reported in march, many people say they have been cheated out of their insurance claims. thousands of claims have still not been resolved, and there is evidence that many homeowners were victims of what appears to be wide-scale fraud, where original damage reports were later changed to make it look like the damage wasn't as bad. making matters worse, appeals to the federal agency in charge of

all of this, fema, went nowhere. hurricane sandy damaged or destroyed hundreds of thousands of homes and rearranged neighborhoods. long beach, new york, was one of them. this was bob kaible's house the next day. the yellow one, with a sand dune blocking his front door. >> kaible: the beaches decided that they didn't want to be there anymore and they came to pay a visit. and that's what happened. and we got back to the house and we were devastated. >> alfonsi: what was that like to walk into your house for the first time? >> kaible: everything that you worked so hard in your life to get is now gone. >> alfonsi: but you had flood insurance. >> kaible: uh-huh. >> alfonsi: you'd pay for every month. >> kaible: absolutely. >> alfonsi: did you think you were okay? >> kaible: sure. i mean, that's what you pay insurance for. >> alfonsi: the city condemned kaible's home, saying it was damaged beyond repair. the house had been knocked off its foundation. his insurance company-- wright flood-- sent an engineer to inspect the damage. three weeks later, the kaibles

couldn't have been more surprised. >> kaible: i get the engineering report that there's no structural damage to the house. so i'm going like, "what do you mean there's no structural damage? the house is not what it was before." >> alfonsi: the insurance company agreed to send someone back out to the house. surprisingly, it was the same engineer, george hernemar, who worked for a company called u.s. forensic. >> kaible: i said, "george, how could you write a report like that?" he goes, "it's not my report." i said, "what... what do you mean it's not your report?" he says, "wait here." he goes to the trunk of his car, goes... picks up the report and brings it into the house. he says, "this is the report i wrote." >> alfonsi: bob kaible got out his phone and took a picture of george's original report. it plainly said there was "structural damage" to the house. but this is the report the insurance company sent to kaible when they denied his claim. "not structurally damaged."

they said the damage was "long term," meaning it existed before hurricane sandy. the kaibles' insurance company wright flood, the largest provider of flood insurance in the country, paid him just $79,000 of his $250,000 policy. >> kaible: we had a i've had estimates of $300,000 to $350,000 to rebuild the house. what am i going to do? >> alfonsi: bob kaible's house was torn down after he sold it for a loss, and he believes it was because of a falsified engineering report. the photo kaible took was solid proof for many other sandy victims who were struggling with similar situations. how many houses do you see that are empty? >> kaible: on this block? probably half of them. >> alfonsi: the kaibles pleaded to a vice president at their insurance company and passed on their evidence. but the company denied full payment, arguing subsequent reports supported them. with frustration as high as the water marks in their home, the

kaibles filed a lawsuit. that suit drew the attention of a texas trial lawyer who had never been to long beach, but got on his plane in a hurry. steve mostyn has won billions fighting insurance companies and when he heard about bob kaible's case, he says he had a gut feeling the kaible family wasn't alone. sure enough, he says, his houston office is now flooded with paperwork from victims of the super-storm. >> mostyn: there's been systematic fraud on the policy holders who've filed flood claims from sandy. >> alfonsi: what's the fraud? >> mostyn: the fraud is taking engineers' reports and changing them-- from saying there was structural damage to saying there's no structural damage, or giving the engineers a form to fill out that already has the conclusion of no structural damage. >> alfonsi: why would anyone do that? >> mostyn: save money. the biggest ticket item inside a claim, for a flood claim, is the structural damage. and so when they don't pay for structural damage, they save hundreds of thousands of dollars on each claim.

>> alfonsi: of the thousands of cases lawyer steve mostyn says he's found, electrician john mero and his wife gail's is the most revealing. their house is in east rockaway, new york. what was this street like in the days... the day after sandy? >> gail mero: six-foot-high water in the street. >> john mero: well, the day after, it was like armageddon. >> alfonsi: the meros' house had to be torn down after the storm. their insurance company paid them just $80,000. and now, they're buried in debt after rebuilding their home. >> john mero: i was like, "how can you tell me that you're not going to cover this, that i'm not going to get the full amount of my insurance?" i says... "you got my payments every month." said "it's time for you to pay and here's what you're going to tell me." >> alfonsi: it was two years later that the meros felt a second wave hit them, when the engineer who assessed their home after the storm called them out of the blue. >> john mero: the engineer sent his report in to the insurance company saying that the house was damaged due to flood. the structural damage is caused by the flood. and from what i understand, the insurance company changed it

changed his words, without him knowing. >> alfonsi: this is andrew braum, the engineer who could no longer stay silent. braum told us not only were changes made to his engineering reports, but he was asked to cover it up. he showed us the original report he'd written about the damage to john and gail mero's house. >> andrew braum: we assess in the conclusions hydrodynamic forces, hydrostatic forces, due to the flood, caused a cracking and shifting throughout the foundation. >> alfonsi: so you're saying the flood caused this damage? >> braum: correct. and then, in the revised or the altered report, it says, "settlement due to consolidation of soil caused the foundation wall to crack." that's not what i wrote; it's completely altered. >> alfonsi: braum inspected more than 180 homes after sandy working for a company called hi- rise engineering. after he discovered the changes made to the report he wrote about the meros' home, he went back to check all the copies of his original reports against the

final copies that the homeowners received. how many of those reports were doctored? >> braum: at least 175 of them or approximately 96%, is the number that i calculated. >> alfonsi: 175 of your reports were doctored? >> braum: correct. they were altered. >> alfonsi: and the ones that weren't changed? >> braum: the ones that weren't changed, interestingly, were ones where i recommended that no repairs are required. >> alfonsi: braum says hi-rise engineering pressured him to sign an affidavit saying he agreed with their final reports. he says he ignored the request and never did it. do you think they were trying to cover up something? >> braum: now knowing what i know, yes. >> alfonsi: what do you think was going on? >> braum: they figured out that they altered all those reports. and they wanted to hurry up and have... they called me braum "braum, get braum to sign off on this quick."

so if braum wasn't thinking or if braum didn't care, he would just sign his name 200-something times, and they were off the hook. and that wasn't happening with me. >> alfonsi: insu have argued the reason the engineering reports were changed was to allow for a peer review process, a standard practice in the insurance industry. >> braum: peer review to me would be amongst my peers of an equal licensing or education level and review a report and discuss it. but not peer review when i send my final report and it's changed without my knowledge. that's not peer review. >> alfonsi: in february, the offices of hi-rise engineering were raided by the new york attorney general's office, which is conducting a criminal investigation into hi-rise, as well as the insurance companies that hired them. hi-rise, wright flood, and u.s. forensic all declined our requests for an interview. they have denied allegations of

criminal activity and all three say they are cooperating with the investigation. more than 2,000 sandy victims have filed lawsuits in federal courts. >> mostyn: you know, we thought originally it might be one engineer, right? and then we find multiple engineers inside the same company. and as we dug into it, it's other engineering companies. well, then you got to start looking for a different common denominator. >> alfonsi: and in this case all of those companies are overseen by fema, the federal emergency management agency. more than five million homeowners living in designated flood zones all around the country are required to buy flood insurance policies backed by fema and taxpayer money. brad kieserman is the new head of fema's flood program. we spoke to him when he'd been on the job just three weeks. he's already had to answer to allegations of fraud and criminal activity at the expense of some of sandy's hardest-hit families. >> brad kieserman: i'm not going to sit here and conceal the fact that it happened. because in the last three weeks, i've seen evidence of it.

>> alfonsi: you say you've seen evidence of these fraudulent reports. >> kieserman: yes. >> alfonsi: you've seen evidence of what could be criminal activity by using unlicensed engineers? >> kieserman: yes, which is why i referred it to the inspector general. >> alfonsi: when did fema learn that there may be a problem here, that fraudulent reports may be used to deny claims? >> kieserman: i think that there were signals. based on what i've seen, if you will, signals in late 2013 early 2014 that there were problems that our survivors were experiencing with engineering, with the claims process, with appeals. but those were signals. and i think those signals got louder, if you will... >> alfonsi: it was more than signals. this is... this is a letter to fema in the summer of 2013 that clearly says that the person conducting, doing the inspections here wasn't a licensed engineer. this is to fema... >> kieserman: so... >> alfonsi: ...in-in the summer of 2013. >> kieserman: so... you're right. this is dated august 19, 2013. and, you know, i've seen this. >> alfonsi: the document, sent

to fema, was an appeal from another family who felt badly cheated by their insurance company. in it they provide proof that the engineer who inspected their home, working for the firm u.s. forensic, was not licensed to work in new york. >> kieserman: this upset me very much. because this piece of information, had it been elevated in the agency, would have been very helpful in helping us help people earlier. >> alfonsi: why wasn't it elevated in the agency? i mean, this to me is the type of thing you run to the boss >> kieserman: this would be the type of thing that i would run to the boss with. and i need to find out why that didn't happen. >> alfonsi: but as far as you know, no one at fema ever said to the insurance companies, ever said to the engineering companies, "keep the claims down"? >> kieserman: as far as i know no one at fema has ever done that. >> alfonsi: but lawyers paid for by fema have gone after sandy survivors in court, accusing them of fraud. bob kaible, who took the photo of his altered engineering

report, was accused in court of stealing the report done on his own home, which he denies. we have homeowners who went through the appeals process. and the attorneys who are being paid for by fema called them thieves, said they were trying to conduct fraud. those are your dogs at the end of the leash. do you take any responsibility for that? >> kieserman: yes, i take responsibility for the fact that when fema funds activities, the people who are getting paid by those funds need to behave in a professional, ethical manner. >> alfonsi: more than two and a half years after sandy neighborhoods still bear the scars of the storm, but settlement talks are underway. fema's brad kieserman and a team of attorneys have flown to texas to negotiate with steve mostyn to settle more than 2,000 sandy claims. these people are truck drivers nurses, firefighters. they said they fought as much as they could.

and they feel like fema just gutted them. they just gutted them. >> kieserman: the fact that that's the experience they had with their insurance companies their engineers, their adjusters in a fema-funded program, that's unacceptable. >> alfonsi: so are you going to make it right? >> kieserman: i am. as you know, i'm doing everything i can in the midst of negotiations to try to make that right. let's face it, i don't have unlimited authority. i can't wave a magic wand and make all of this right for everyone. >> alfonsi: this past week after four months on the job brad kieserman announced he is leaving his post at fema to work at the red cross. he told us he delivered on his promises to make it right for sandy victims. but since our story first aired, only a handful of homeowners have received new settlement checks.

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>> kroft: as recently as five

years ago, you would have been forgiven for not knowing exactly who bradley cooper was, despite the fact that he had been in roughly 20 movies and four television series. today, you have no excuse. as we first reported in february, he had quite a year, winning acclaim for two roles that couldn't be more different: one on stage, portraying a sensitive soul with a horrible affliction. he's up for best actor for that role at tonight's tony awards. and the other on film as a stoic, solitary navy seal in clint eastwood's "american sniper," which earned cooper his third academy award nomination in as many years, something only ten male actors have ever done before. it puts him on a list with names like marlon brando, jack nicholson, spencer tracy, and gregory peck. and it announces his arrival not just as a major movie star but as a committed, talented and versatile actor. a friend of yours said, "i think there's part of bradley that

doesn't quite believe this has happened to him." >> bradley cooper: well, believe it, inasmuch as i believe i'm sitting here, talking to you. but the thrill's still there. don't get me wrong-- the thrill is still massive, you know? i mean, i... i wake up very happy every day, i'll tell you that. >> kroft: it's where bradley cooper wakes up these days that's more problematic. for the past few weeks, he's been parachuting into l.a. for 24-hour binges of obligatory pre-oscar hoopla. this year, it's "american sniper," which we'll get to later. the rest of the week, he wakes up 2,700 miles away in new york. that's him with the backpack the toast of broadway, locked into one, sometimes two performances a day of "the elephant man." >> cooper: you know, i always sort of talk about, to myself at least, or to my friends, about wanting to just keep life very simple. i've found it most simple here in new york. you know, it's basically i have a... in a way, a nine-to-five job, you know? i do eight shows a week. i live in new york city. i get to walk everywhere, and you know, just be one of the people of the city. and it's a... actually wonderful.

>> kroft: you can move around all right? >> cooper: oh, yeah. i mean, there's nobody with me. i just came here, you know? i... i do everything on my own. so, it's great. >> kroft: and no paparazzi? people don't bug you? >> cooper: no, they get... they get me on the way from where i live to the... to the subway station. but for some reason, they don't want to spend the $2.50 and ride the subway with me. and so, i lose them in the subway. >> kroft: "the elephant man" has been a huge success, smashing attendance records, and winning cooper excellent reviews from broadway's toughest critics for a role that's been part of his consciousness for decades. at age 12, he decided he wanted to be an actor after watching the movie version. it tells the story of john merrick, a horribly deformed british man with a saintly soul who's rescued from a 19th century freak show and given sanctuary at a london hospital. 28 years later, cooper has produced, cast, and arranged the financing for the current broadway production. you play john merrick? >> cooper: yeah. >> kroft: without any makeup? without any prosthesis? >> cooper: uh-huh.

>> kroft: just you, bradley cooper? >> cooper: yeah. >> kroft: and you have to convince the audience that you're him? >> cooper: yeah. >> kroft: how do you do that? >> cooper: by believing i'm him. that's how i do it. if i'm acting like i'm him or i don't quite make that leap of faith, there's absolutely no way you're going to believe it. i had to do a tremendous amount of work to get to a place where i do believe i'm him. >> kroft: part of the work was 20 years of research, and part of it is a performance unlike any he has ever given. the transformation from cooper to merrick is shared by the audience in one of the early scenes. >> cooper: as the doctor is speaking to the pathological society, which actually is the audience of the play, and you see an actual photograph of joseph merrick in between us, he is then describing all of his afflictions. >> doctor: from the upper jaw that projected another massive bone... >> cooper: and then i then interpret each one in a physical manner. >> doctor: the right hand was large and clumsy, a fin or paddle rather than a hand. >> cooper: almost mimicry, almost like a mime.

>> doctor: to add a further burden to his trouble, the wretched man, when a boy developed hip disease, which left his permanently lame so that he would only walk with a stick. >> cooper: and once he's finished with that presentation, i'm fully physically transformed but the soul hasn't been injected yet. he brings the cane over, steps away, and then says "please." >> doctor: please. time you hear merrick alive. that is the moment where the transformation occurs. and if i don't... if i don't make that leap at that moment, the rest of the play is not going to work. ( cheers and applause ) >> kroft: but it has through 111 performances, each one ending with a standing ovation, and hundreds of people outside the stage door behind police barricades waiting for cooper's autograph or a picture, or a

chance to touch someone "people" magazine had once declared the sexiest man alive. but it's a moniker that belies his intelligence and talents. he's an excellent cook, speaks fluent french, and after graduating with honors from georgetown university with a major in english, he borrowed $70,000 to get a masters degree from the actors studio. >> cooper: "how you doing, mr. de niro? my name is bradley cooper. my question is regarding "awakenings." >> kroft: but bradley cooper was never a struggling young actor. he was making out with carrie bradshaw on "sex in the city" while he was still in grad school. a year later, had a tv series, "alias," alongside jennifer garner. and promptly paid off that college loan. but he was not an overnight sensation, either. you may remember him as the obnoxious fiance who made a big hit in "the wedding crashers."

but it took him four more years and a road trip to vegas for a bachelor party to make him a movie star. "the hangover" grossed nearly a half-billion dollars world wide. really, things started to change, i guess, with "the hangover." i mean, that was huge. >> cooper: massive, oh, yeah. yeah, yeah, any time you're part of a movie that makes that much money in the box office, it's going to provide opportunities for other studios to take chances with you, just on a very mathematical level. that is the way it works. i mean, everyone has a number next to them about what their value is. and when they are casting a movie, any producer will tell you, every actor has a certain amount of currency that an investor will allow them to make so that you can get your money and get your movie made. >> kroft: you had a perfectly good career. you would play, generally, either leading men or... or main

supporting actors. and nobody during that time said, "you know, bradley cooper's really a great actor." and now, you've got three academy award nominations. how'd that happen? >> cooper: opportunity. people believing in me. i mean, people that have power willing to take a chance. that... that's everything. you know, you've got to walk through the door and show them why you should be in the room, but you know, the door's got to, you know, be open for you to walk through it. >> kroft: and one of those opportunities was "silver linings playbook". >> cooper: absolutely. >> kroft: in this quirky romantic comedy, cooper played a bipolar teacher who is discharged from a psych ward intent on reconciling with his ex-wife, only to meet jennifer lawrence, who is just as mixed up as he is. it landed cooper his first oscar nomination. the next year, cooper was nominated again in a supporting role for his portrayal of

whacked out fbi agent richie dimaso in "american hustle." both films were written and directed by david o. russell the first to realize cooper's potential. why do you think he cast you? >> cooper: you know, i think that he saw something that he believed in. i remember him saying to me, "you know, i've only seen you in first and second gear, and i think you've got about six gears. so, i want to go to those gears. >> kroft: once again, in "american sniper," cooper has turned in a performance that is vastly different than anything he has ever done, in a film "the new yorker" called a "subdued celebration of a warrior's skill, and a sorrowful lament over his alienation and misery." it has generated heated debate about the morality of the war in iraq, and nearly $300 million at the box office. do you think this is a political

movie? >> cooper: you know, my reaction is, like, "no." but then, we could have a discussion about everything's political, do you know what i mean? but no, i... no, i never saw that. i saw it as telling a personal story. >> kroft: it's the story of chris kyle, a navy seal sniper who survived four tours in iraq with 160 confirmed kills protecting the backs of u.s. marines in places like fallujah and sadr city, and it's about the toll it took on him and his family. most challenging role you've ever had? >> cooper: oh, without question. and for nothing else other than, steve, that he was a real human being. it's like, you just work hard, work hard, work hard, do all the work, do all the... and then hopefully, you just pray that it just starts to happen, so that when you walk on that set that first day, he's there. >> kroft: to make it happen, cooper decided he needed to put on 40 pounds of muscle to capture kyle's enormous physical presence and calm demeanor. for three months, he ate 6,000 calories every day, and spent

eight hours working out and perfecting kyle's texas accent. the weekends were spent on sniper training with former seals. what were you trying to convey with this movie? i mean, what did you hope to convey? >> cooper: if we were able to hit the bulls eye. one was, that's men and women in the service who watch the movie feel like they see their story up there, or they can relate to it. number two would be people... the 99% of the population that has... knows nothing about what military men in service go through, or their families would see it in a different light and say, "oh, wow, i had no idea." hold on. i got a woman and kid 200 yards out, moving towards the convoy and she's carrying something. she's got a grenade. she's got an rkg, russian grenade. she's handing it to the kid. you got eyes on this. can you confirm?" i'm on the gun, and i've shot live ammo through it, and i've seen what it does. i know that i can take them out

if i want to, but my whole stomach, steve, turned like that the minute i saw them through the crosshairs-- even though it was an empty gun, there were no bullets, you know, they're actors, it's not a real russian grenade. but because of the work that i had done, it was enough so that my body physically changed. so those little things key you into what... maybe having a glimpse of what a... any soldier has to go through. >> kroft: cooper gives much of the credit to director clint eastwood, who allowed him to observe and participate in every aspect of the production. and in cooper, eastwood sees a little bit of himself. >> clint eastwood: he's probably as professional of any actor his age i've ever met, and i never caught him acting. and that is a compliment. he's going to be a great director one of these days, when he gets tired of acting, which we hope is not too soon. >> kroft: bradley cooper just turned 40, so there are lots of things he plans to do, including eventually having a family, when he has the time and all the right things fall into place.

he grew up in a tight irish- italian clan in philadelphia which he still considers home. we spent an afternoon there with his entourage, which consisted of his dog, charlotte, his cousin, colin compano, and his mother gloria. when "the elephant man" ended its run on a saturday night in february, they had just enough time to get to l.a. for the oscars on sunday. so, you... you are going as his date? >> gloria: oh, yeah. >> kroft: this is, like, the third year in a row. >> gloria: i know, it's... >> kroft: aren't you getting tired of it? >> gloria: i love it. no. i love it. when my son... are you kidding? this is his third time, and i think, this year, he'll do it. i really do. >> cooper: oh, jesus. >> kroft: as we now know bradley cooper did not win the oscar for his role in "american sniper." we'll see what happens tonight at the tony awards, where he's up for best actor for his role in "the elephant man."

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celebrate the best of broadway with your hosts for the evening kristin chenoweth and alan cumming. and now live from radio city music hall the tony award's orchestra kicks off broadway's biggest night. captioning sponsored by cbs >> announcer: it's the american