both homes of both men were searched and attorneys say medunjanin were searched.never stopped. >> the very nature of anti-terrorism investigations is that there is long-term surveillance of people under suspicion. often, that leads to nothing. sometimes, it can lead to a mother lode of evidence that people were up to no good. >> reporter: medunjanin's attorney says he was not 1r068d. >> he denies any terrorist activities. he spock to help for countless hours explaining his relationships and that he's not involved in terror. >> and susan candiotti joins us now live from new york. susan, one of these suspects have already been arraigned. when is the other one due in court? >> reporter: it is expected -- good morning, betty. it is expected to happen this morning. we don't have a specific time yet. and, as well, the particular person we're talking about, medunjanin, this morning, he has not yet heard the charges against him. his lawyer is not aware of what his charges are. but we are hearing from a law enforcement source that they are expected to include receiving mil

involving a man by the name of adis medunjanin, charged with conspiracy to commit murder outside the united states as well as getting military training from al qaeda. he has pleaded not guilty to both of the charges. the government indictment alleges that this alleged murder conspiracy happened between august and october of 2008. that, specifically, he got on a plane and traveled in newark international airport to cutter and then to pakistan during that period of time, specifically at the end of august, 2008. fredricka? >>> and he was not allegedly acting alone but there were others involved? >> well, it is alleged that he is an acquaintance of a terror suspect by the na imname of najibullah zazi. this man today as well as the cab driver who was charged yesterday again are alleged to be acquaintances. however, the attorney representing this man and the other man both have no comment about that. at least one gentlemen or both of them are known according to their lawyers to at least know this other terror suspect. both have denied being involved in any kind of terrorist activities. >>

he's identified as adis medunjanin.ne official told me the maty federal prosecutors. trace: california going broke and governor schwarzenegger wants the feds to fix it. >> any minute now we are expecting governor schwarzenegger to unveil his latest budget proposal. he's trying to shore up a $21 dil budgebillion budget hole. he's asking the federal government for an $8 billion credit to cover up funded mandates, things like border protection and medicare and medicaid program. california provides 13% of the nation's gross domestic product and the recovery of the nation depend on california. trace: that is brand-new information at the bottom of the hour. martha: the world economy proving we are all connected. unemployment in the eur o-zone 10%. the highest rate since they began using the euro in 1999. amy has a report for us live from london. >>it is the same as the united states, but it's a euro record. this is as high as it's gotten. that impacts consume were spending. people are spending much less because of this situat

have been identified as adis medujanin and czar ain ahmedzay and the circumstances surrounding medunjanin's arrest are intriguing. he was under fbi surveillance at the time he was taken into custody and apparently he was perhaps trying to flee those fbi agents in his car as he was in the vicinity of the white stone bridge in queens, new york, when he hit another vehicle. he then got out of his car and he tried to flee on foot. that is when he was apprehended. he was taken to a hospital, and he is now in the custody of authorities facing charges. again, we do not know precisely what these charges are. we do know that the authorities have seized the passports of both of these men, both of these individuals, john, very interestingly, lived in the very same neighborhood in queens, as najibullah zazi. as you mentioned, this is key here, both of them allegedly traveled with zazi in 2008 to pakistan. whether or not they're going to be charged with terror-related activities, that's not entirely clear. we have heard that it is possible one of the men could be charged with lying to authorities, poten