jeff pegues reports. >> reporter: working from inside the command center in pittsburgh investigatorsy crushed what was an exclusive online group of hackers. u.s. attorney david hickton. >> through this operation we have dismantled a cyber hornet's net that proved to be impenetrable. >> operation shrouded " eded horizon found them. they said they had to be invite by another member and had to prove their skills. once admitted 250 members traded, bought and sold everything from credit card to social security numbers to millions of stolen log-ins and passwords. also popular were hacking programs to spy on cell phone users. according to prosecutors, one program was designed by a 20-year-old morgan culligan of pittsburgh. he designed den droid for about $300. it would affect google apps and allow people to hack into calls. google said the attack was small and stopped last year. another hacker 39-year-old eric crocker from new york called himself fast man. he's charged with use pramg that infected facebook users' computers to send out massive amounts of spam. the dark code site has been shu

homeland security correspondent jeff pegues is working this developing story. >> reporter: according to investigators, 23-year-old alexander ciccolo was arrested on july 4th with two rifles and two handguns. an f.b.i. search of his home found two machetes, a long, curved knife and several partially constructed molotov cocktails. court papers say he planned to use the cache of weapons in an isis-inspired attack at a state university. sources say ciccolo's father, robert, a captain in the boston police department, alerted authorities last fall that his estranged son had a long history of mental illness and had become obsessed with islam. then in late june, investigators say ciccolo told an f.b.i. witness his attack at a state university would focus in the college dorms and cafeteria and would include executions of students broadcast live via the internet. he asked the witness to get him firearms. court papers say ciccolo praised the boston marathon bombers, and on july 3rd purchased a pressure cooker at a massachusetts wal-mart. the same type of device used in the marathon attacks. in

here's jeff pegues. >> reporter: the all-hands-on-deck response at the navy yard was an example of the heightened concern about terrorist attacks. it was a false alarm but law enforcement is not taking any chances ahead of the holiday weekend. metropolitan police chief cathy lanier: >> we take every event here in washington very serious and our posture remains extremely high for all special fortunates and it will continue for the fourth. >> reporter: last week's department of homeland security bulletin warned of an increased threat of isis-inspired violence over july four. one official said, "there is no specific credible intelligence for an attack" but isis has called for attacks against the military, law enforcement, the u.s. government, and the american public. that's led to beefed up security at airports and landmarks. new york will have an extra 7,000 police patrolling july 4 events and fusion centers very set up to help coordinate information in the event of an attack. in recent weeks, investigators have stepped up arrests taking more than a dozen alleged isis sympathizers into c

jeff pegues has more about him. >> reporter: this cell phone video captured part of the gunman's shoot-out with police. [gunfire] 24-year-old mohammad youssef abdulazeez was carrying two rifles and a handgun. officials tell us at least one of the rifles was an assault-style weapon. police also say he was wearing a with enough ammunition to reload. f.b.i. special agent in charge ed reinhold. >> these officers were under a tremendous amount of gunfire from this individual and yet they continued to move forward against this target and engage him and eliminate that threat, saving numerous lives throughout this community. >> reporter: abdulazeez's computers and other communication devices have been sent to the f.b.i. lab in quantico virginia. officials will see whether he had contact with isis or other terrorist groups. officials say he traveled to jordan last year and spent seven months overseas. investigators want to know who he met with and if any of his contacts attempted to radicalize him. investigators have discovered two blog posts attributed to abdulazeez. "this life is short and bitter

here's justice correspondent jeff pegues. >> reporter: the airlines under investigation are some of the industry heavyweights-- american southwest and united. all received letters from the department of justice which american airlines says asks for documents and information from the last two years related to statements and decisions about airline capacity. federal prosecutors want to know if airlines conspired to limit available seats. if true, that would keep airfares high. with four mergers since 2008, four airlines now control more than 80% of seats on u.s. planes, and the agent domestic airfare rose 13% from 2009 to 2014 leading airlines to record profits. a spokesperson for the industry defended the airlines saying it is customers who decide pricing and our members compete vigorously every day and the traveling public has been the beneficiary. is this happening? is there some sort of collusion keeping prices high rather than lower? >> almost certainly no. >> reporter: industry analyst josh marks. >> technology today is so pervasive, that airlines can watch what their compet roars d

justice correspondent jeff pegues reports the commissioner was fired. >> so we need a change. >> mayor stephanie rawlings-blake announced the change that many said was long overdue. she said questions aboutoner anthony batts leadership was distracting from the fight against crime. >> too many continue to die on our streets including three just last night and one lost earlier today. families are tired of feeling this pain. >> reporter: batts had been in charge of the police department since 2012. in late april he faced his biggest test after riots exploded in the city in the wake of the death of freddie gray in police custody. six officers have since been charged in the case. that created a rift between batts and his officers. they accused him of putting them in harm away during the riots, he was reported apologizing to the police union at a closed door meeting in may. >> i want to tell you that i think i let you guys down. and i have a humble heart. >> reporter: despite the apology, some questioned whether police were easing up on arrests and protests. homicides spiked in the weeks aft

jeff pegues reporting for us in washington. this was the president in the oval office late this afternoon. >> i'd ask all americans to pray for the families who are grief stricken at this point and i want everybody to understand that we will be prompt in figuring out exactly what happened. >> pelley: of course, there are hundreds of recruiting offices like the one that was targeted today. and jim axelrod is looking into the security challenge. jim? >> reporter: well, scott recruiting centers like this one here in elizabeth, new jersey, pose a particular problem a particular challenge for the u.s. military. the centers are designed to be very easy for members of the public to walk into. but that's exactly why they are very easy targets. now, this afternoon police presence increaseed at high-profile recruiting centers like the one in times square in new york city. but the northern command has yet to issue a nationwide alert to increase security at all recruiting stations. a military spokesman tells cbs news "we are continuing to

the federal investigation has not been released, but justice correspondent jeff pegues has the results. >> reporter: in the 17 days after the shooting of michael brown, massive protests and2 ar clashes with police led to at least 212 arrests and 28 injuries. a summary of the department of justice report highlights a litany of failures in the in the police response. the deployment of snipers was an inappropriate crowd control measure. tear gas was deployed inappropriately without proper warnings. police dogs exacerbated tensions by unnecessarily inciting fear and anger among amassing crowds. officers outfitted with military-style uniforms and equipment produced a negative public reaction. >> you must disperse immediately. >> reporter: and ordering the crowd to keep moving violated citizens' right to assembly and free speech. the report also says the response was flawed from the start as law enforcement quicklyut released information about michael brown's death, community distrust and media skepticism would most likely have been lessened. the full report will not be out for weeks. the fe

scott, plant officials say they are cooperating with this investigation. >> pelley: jeff pegues reporting from the washington newsroom tonight. jeff, thank you very much. there is breaking news in southern california where a large brushfire is burning in san bernardino. danielle nottingham is following this. >> very scary situation out here for these folks going southbound on the 15. >> reporter: cars trapped in rush hour traffic burst into flames as the brushfire jumped the 15 freeway a major artery connecting los angeles and las vegas. fueled by dry brush and hot temperatures, the wildfire quickly exploded from 20 acres to 2,000. officials shut down the freeway in both directions, but it was too late for many commuters, who were trapped in bumper to bumper traffic and surrounded by thick smoke and fast-moving flames. firefighting aircraft were temporarily grounded by drone activity in the skies overhead but water drops have resumed at this hour. fire officials initially ordered drivers to stay in their cars, but many abandoned their vehicles and tried to walk to safety. there are mandat

we'll have a series of reports beginning with homeland security correspondent jeff pegues in washington. jeff? >> reporter: charlie f.b.i. investigators have not turned up a direct link to isis or any other terrorist organization overseas. law enforcement sources confirm that investigators have found pages of notes believed to have been written by the gunman. law enforcement sources say mohammad youssef abdulazeez wrote about his drug use and how he was influenced by images of death in the middle east. family and friends say the 24-year-old was depressed and at times on medication. officials say abdulazeez had been seeking religious guidance recently. during anin' line search, the 24-year-old looked at the writings of u.s.-born anwar al awlaki among others. al awlaki was killed in yemen by a u.s. drone strike in 2011 was a cleric and leading member of al qaeda in the arabian peninsula he spread his message of jihad in videos and writings. among his followers nadal hasan, the gunman who shot and killed 13 people at fort hood in 2009. sources say abdulazeez's writings continue and thed su

. >> pelley: jeff pegues in the washington newsroom. jeff, thank you. in another important story tonight, a toxic fire is smoldering in tennessee from a tanker car that derailed late yesterday. omar villafranca is at the scene in maryville. >> reporter: the train, traveling with 57 cars derailed, and one car caught fire just before midnight. >> reporter: the derailed car was carrying acrylonitrile, acs hazardous material used in the making of plastics.de marian o'briant is with thele blunt county sheriff's department. >> we learned pretty quickly that there was a highly flammable and toxic substance on the car that derailed. the fire and the way the wind of blowing, we knew that we had to get people out of there. >> reporter: exposure to the fumes can cause headaches, dizziness and rapid heartbeat. plumes of noxious smokes crept into nearby maryville.t. emergency crews raced to evacuate 5,000 residents in the middle of the night. manuel toledo woke up to a man pounding on his door. >> he had this, like, cover on it looked like-- you know, like he was in

jeff pegues has the late- breaking news. jeff? >> reporter: jane, sources tell cbs news that boeing investigators believe this debris appears to be from a 777, the same type of aircraft as malaysia airlines flight 370. the search had been focused on a large area in the southern indian ocean off the coast of australia, but this debris was found thousands of miles away on a remote island off the eastern coast of africa. it's been 17 months since the aircraft disappeared with 239 people on board. the flight was en route from kuala lumpur to beijing when it veered off course, ceased communication with ground control, and then dropped off radar. there have been false sightings before but never one that turned out to be actual airplane debris. there have been two other planes that crashed in the area where the wreckage was found today but neither was a boeing 777. jane, the boeing investigators have only looked at pictures of this debris, and as of tonight they have not concluded that wreckage is definitely from the missing plane. >> pa

jeff pegues is in our washington bureau. r sources telling you about the level of concern about what's going on on wall street? >> well, obviously jim, this is something that does not happen every day, so there is some concern about what's happening first off, two the new york stock exchange. i talked to a law enforcement source who tells me law enforcement at this time is monitoring the situation but as far as they can tell right now, there were no threats made against the new york stock exchange. so this is a position where they are watching what's happening there, but they have no indication that there was any cyber attack or anything like that right now. of course, we know, with the new york stock exchange is saying, they have released a statement via twitter that they are doing their utmost to produce a swift resolution and going to be providing further updates as soon as they can. they are calling this a technical issue. that's what they are calling it. so, again, no indication right now, according to the law enforcemen

justice correspondent jeff pegues now on what else we know about him. >> reporter: online postings over last several years suggest john houser was angry and frustrated by social changes in the country. the southern poverty law center, which tracks extremists, says it uncovered writings where houser praised adolf hitler for "accomplishing far more than any other" and described america as a "failing filth farm." in january 2014, houser allegedly encouraged others to "realize the power of the lone wolf." now, investigators say, the 59- year-old apparently acted alone when he carried out his own attack last night. there were other warnings. in 2008, his family filed a petition for a protective order in carroll county, georgia. it cited houser's "history of mental health issues, manic depression, and/or bipolar disorder." his wife kellie told police she "had removed all of the guns from their house" and that "he should not have one unless he obtained it illegally." also in 2008, houser was involuntarily committed to a hospital. it is unclear when he was released. then, in 2014, houser lost h

here's jeff pegues. >> reporter: online posting for several years suggests john russell was angry andby changes in the country. they uncovered wrights where houser praised adolf hitler for accomplishing far more than any other and described america as a failing failing failing filth park. he wanted others to realize the power of the lone wolf. now apparently investigators say he acted out alone when he carried out his owner attack last night. there were others like a protective order. it cited houser's history of mental health issues ma nick depression and/or bipolar disorder. his wife kellie told police she had removed all gun from the house and he should not have one. he was voluntarily committed to the hospital. it was unclear when he was released. then in 2014 houser lost his home to foreclosure. the current owner said he trashed the place. he gave us these photographs. >> he booby trapped it. he connected a fire inside. he set the gas line on friday. >> reporter: late friday investigators revealed he purchased a handgun used for the shooting in a alabama pawn shop. in 2006 he had

jeff pegues is in washington right now with what we know so far about the shooter.d morning. >> good morning. the authorities are rushing to lafayette, louisiana, as investigators work to determine a motive for this shooting. so far the investigators believe the gunman was acting alone and sources say increasingly it appears he was firing randomly at theatergoers. the policemen know who the gunman was but have not released his name. they describe him as 58-year-old lone white male. initially they saltd he was wearing a denim shirt when he opened fire. the atf is on the scene and will trace the handgun but they say he has a criminal history that does not include any recent arrests. police say there were about 150 people inside the thalter and he likely first shot individuals directly in front of where he was seated. police also located his car in the parking lot after the shooting and safely cleared the vehicle using a controlled explosion. now, we're expecting an update on the investigation in the next 30 minutes. christine. >> jeff, thank you. we will continue to m

jeff pegues is in washington over what fueled the government's probe. good morning. >> good morning. it's the business model that's caught the eyes of the department of justice. it's happening with the use of sophisticated computer programs. investigators want to know if that's leads to collusion, which in turn is helping to drive record profits. more than 3 million americans are expected to take to the skies for the fourth of july weekend, according to aaa. but they're looking to see if some airlines conspired together to drive up the prices of seats. on wednesday they all received letters. it related to statements and decisions about airline capacity. >> at a time when passenger frustrations are at an all-time high, this could take it to the next level. we're worried that people could become so frustrated they'll choose to stay at home. >> it started with mergers in 2008 which left just four airlines controlling 80% of seats on u.s. planes. the average price rose 13% from 2009 to 2014. that doesn't include fees baggage, food. american airlines say it'

jeff pegues is in washington with what fueled the government's probe. >> reporter: it's the industry'siness model. the objective of the airlines is to keep planes packed with passengers. that's being done with the use of sophisticated computer programs. it's helping to drive record profits. more than 3 million americans are expected to take to the skies for the fourth of july weekend according to aaa. but the justice department is investigating whether some of the biggest airlines work against flyers, conspiring to limit seats in order to drive up prices. on tuesday, american southwest, united and delta all received letters which american airlines says asked for documents and information from the last two years released to statements and decisions about airline capacity. >> unfortunately at a time when passenger frustrations are at an all-time high this could take it to the next level. we're concerned people will become so frustrated that they just decide to stay at home. >> reporter: the department of justice approved a wave of mergers starting in 2008 which left just four airlines in

. >>> jeff pegues is in washington with what we know so far about the shooter. >> reporter: investigatorse identified the shooter as john russel houser. he'd been in the lafayette area since july. investigators believe he was acting alone and it increasingly appears he was firing randomly at theatergoes or and may not have known any of the victims. he acted alone when he opened fire. he fired about 13 rounds. he also planned to escape by parking his car near a theater exit but turned back into the theater when he saw police. police located his car and safely cleared the vehicle using a controlled explosion. inside the vehicle they found disguises including glasses and wigs. already officials told us he has a criminal history but that does not include any recent arrests. the motive remains a mystery. investigators are asking anyone who may have known the gunman to come forward with information. >> jeff, thank you. >>> we will continue to monitor the investigation into the movie theetd theater rampage in louisiana. we'll bring you updates throughout the broadcast. >>> hillary clinton's use