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CNN Wolf Blitzer Reports

Father of One of Illinoois Murder Victims Charged; Operation Matador Continues; Man Sneaks Aboard USS Harry Truman

Aired May 10, 2005 - 17:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


WOLF BLITZER, HOST: Happening now, police in Zion, Illinois set to announce new developments in the case of the two stabbed little girls at a park. We'll have live coverage coming up this hour. Standby for hard news on WOLF BLITZER REPORTS.
(BEGIN VIDEOTAPE)

BLITZER (voice-over): Badge bust -- the real police arrest a man with a huge supply of very good fake I.D.s.

UNIDENTIFIED MALE: Over 1,300 very good counterfeit badges representing over 35 law enforcement agencies. How many more are out there and in who hands?

Close combat -- the fighting is fierce and face to face. New pictures from the military offensive in Iraq.

Final salute -- they fell in battle on hill 665. Four decades later they're at home, and at rest.

(END VIDEOTAPE)

ANNOUNCER: This is WOLF BLITZER REPORTS for Tuesday, May 10, 2005.

BLITZER: Thanks for joining us. A person of interest and word of pending charges in the case of those two murdered little girls in Zion, Illinois. Police have questioned the father of one of the girls.

CNN's Chris Lawrence standing by live on the scene with the latest -- Chris.

CHRIS LAWRENCE, CNN CORRESPONDENT: Well, Wolf, that news conference is set to begin in just about 45 minutes. But you know, cut through all the talk about persons much interest and suspects and all of that. What people here want to know is is there some random person, some random killer, who murdered these two girls and is still out there a danger to other children here?

Police may be very close to answering that question for them. Right now what we have learned is that they have been talking to and have identified as a person of interest the father of one of the girls. His name is Jerry Hobbs. We've also learned that he does have a criminal history in the state of Texas, and family members tell us he was released from prison just about a month ago and then moved here to Illinois.

Again, the police will be holding a news conference to give some more details on this situation. And to bring you up to date, these are two little girls who are second-graders and best friends. They were playing outside on Mother's Day, never came home when they were supposed to. Their bodies were then found the next morning in a park very close to where they go to school and live. And that set this community off. Parents were literally terrified. Schools were assigning escorts to get the children home safely. Many parents were literally walking their children to and from the front door of the school, very scared in a very small town like this, to think that someone could be out there and be a danger to their children. Now we may have a lot of those answers to the questions that the parents have been asking for the last two days -- Wolf.

BLITZER: The father, Chris, got out of prison, I take it, convicted of a charge of aggravated assault? Is that what we know about his criminal background?

LAWRENCE: That's what we are getting from the file companies, from the search engines, so to speak. When you do a data search on someone's criminal history. We are in the process of trying to confirm that, and secondary source that with the actual D.A. of that Texas county. But from what we know right now, it looks like he has a lengthy criminal history in the state of Texas. And relatives do confirm that he did get out of prison about four weeks ago and then came back here to Illinois, where his daughter lives.

BLITZER: Chris Lawrence, we'll be watching these developments together with you. Chris Lawrence on the scene for us. And we'll stand by for that news conference coming up later this hour. Once the local authorities start speaking to you, we'll bring it to you live.

Meanwhile there, was a gruesome discovery in rural Riverside County, California. Police responding to a 911 call found the bodies of three adults and three children inside a sprawling ranch near the community of Pine Meadow. That's about 100 miles southeast of Los Angeles. Officials say the victims suffered head trauma, but did not say how they died or reveal their identities. The home is owned by an investigator with the county district attorney's office. We'll have a live report on this gruesome story. That's coming up later this hour as well.

In addition, we're following other stories, including in Iraq where they call it "Operation Matador." U.S. troops are taking the bull by the horns in Iraq's rugged Anbar Province. It's an all-out assault on insurgents, who in turn are fighting back with everything apparently they have.

Let's go live to our senior Pentagon correspondent, Jamie McIntyre -- Jamie.

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: Well, Wolf, the Pentagon says that "Operation Matador" is a dagger aimed at the heart of the insurgency in western Iraq.

(BEGIN VIDEOTAPE)

MCINTYRE: These first fleeting glimpses from the front lines give a flavor of the remote area of western Iraq, where "Operation Matador" has been unfolding, but show nothing of the ferocity of the fighting of the past three days, as U.S. Marines engage a motivated and well-trained enemy.

BRIG. GEN. JAMES CONWAY, U.S. MARINE CORPS: There are reports that these people are in uniforms, in some cases are wearing protective vests. And there's some suspicion that their training exceeds that of what we have seen with other engagements further east.

MCINTYRE: According to journalists embedded with the U.S. Force of some 1,000 Marines the toughest battle came Monday during a night of gritty house-to-house urban warfare.

JAMES JANEGA, CHICAGO TRIBUNE REPORTER: In Ubedi (ph) it was face-to-face combat. The firing, as I said, was quite intense. They went there in armored personnel carriers with tanks. They had air support from F-18s and from Huey Cobra Gunships.

MCINTYRE: The operation kicked off Saturday when the Marines crossed the Euphrates River and set up a blocking position south of the Iraqi town of Ramada. But instead of running the enemy stood and fought. So far the U.S. says as many as 100 insurgents have been killed.

UNIDENTIFIED MALE: If they are intending on being martyred, that has to be cranked into the equation with this particular enemy.

MCINTYRE: The Pentagon says since last November's Fallujah offensive the center of resistance has moved west, regrouping in the desert area near the Syrian border, where smuggling routes provide easy access to money and arms. There has even been a reported sighting within the past three weeks of Iraq's most wanted terrorist, Abu Musab al-Zarqawi. But he is said not to be a target of the operation.

UNIDENTIFIED MALE: It would be a welcome event to come across him or his body and find him in that region, but that's not the purpose of the operation.

(END VIDEOTAPE)

MCINTYRE: And in what appears to be a desperate move, rebels have kidnapped the governor of the region and are holding him hostage demanding an end to the U.S. offensive. The U.S. military says it doesn't deal with kidnappers, and some observers believe that the abduction is linked to a feud between the governor's tribe and one that backs Zarqawi -- Wolf.

BLITZER: This operation taking place not far from the Syrian border, as you reported, Jamie. What are they saying at the Pentagon about the involvement of the Syrian Government per se in allowing these insurgents, these foreign fighters, as they're called, to come into Iraq from Syria? MCINTYRE: Well, they're still complaining about the fact that Syria is not doing essentially anything to stop the flow of arms, money, and as you said, fighters themselves from going in and out of Iraq across that border. I think the U.S. military realizes it's going to be its job and the Iraqi forces' to eventually seal that border. They're complaining to Syria, but other than that they're not saying too much publicly.

BLITZER: Jamie McIntyre with the latest at the Pentagon. Jamie, thanks very much.

And while they may be hard pressed right now in western Iraq, the insurgents are keeping up their attacks in the capital, that would be Baghdad. Three more bombs blew up there earlier today. The worst was a suicide strike which killed at least seven people and wounded 14 others. Police say the target may have been a U.S. military convoy.

Coming up -- our CNN security watch. Hundreds of fake badges, police badges, seized in a bust. Why officials say the case could be devastating to homeland security.

Also, an intruder caught on board a U.S. aircraft carrier. How did he get there? What does it mean for security?

And we're standing by once again for that news conference on the case of those two little girls murdered in Zion, Illinois. There are new developments. They're expected this hour. We'll bring you the news conference live once it starts.

(COMMERCIAL BREAK)

BLITZER: Just want to remind our viewers, we're standing by for a live news conference from Zion, Illinois. We expect law enforcement authorities there to update us on their search for the killer or killers of those two little girls, those 8 and 9-year-old girls, their bodies, discovered yesterday. We'll go to that news conference this hour as soon as it begins.

In our CNN "Security Watch," a stunning development in New York involving the arrest of a Russian man with hundreds of fake law enforcement badges. One official says it could be, and I'm quoting now, "devastating to homeland security."

CNN's Deborah Feyerick has been covering this story. She's joining us now, live, from New York. Deb?

DEBORAH FEYERICK, CNN CORRESPONDENT: Well, Wolf, for federal officials, this is one of their biggest fears, the possibility the terrorists may use phony badges to pose as real agents. Now, yesterday U.S. marshals seized some 1,300 counterfeit badges from 35 different law enforcement agencies, everything from the FBI, drug enforcement, to secret service and customs. They also found two manuals detailing the size and dimensions of each and every one of those badges.

Now, the head of immigration and customs enforcement in New York City calls the counterfeits, quote, "very, very good."

(BEGIN VIDEO CLIP)

MARTIN FICKE, ICE SPECIAL AGENT: Here you have, clearly, over 1,300 very good counterfeit badges representing over 35 law enforcement agencies, federal, state, and local, and for someone to have that in their possession and to be able to utilize that to identify themselves as a law enforcement officer could be devastating when it comes to a situation like homeland security, of course, where we're trying to control access to various things and the authority of various people to have access to those particular locations.

(END VIDEO CLIP)

FEYERICK (voice-over): Now, the badges were shipped from Taiwan to San Francisco. A customs agent opened the package, and she then alerted federal officials in New York. Now, marshals raided the Bronx home of Sergio Khorosh (ph). He is Russian-born, but he's been living in the United States as a permanent resident. Officials say that he's been arrested more than a dozen times in the last 15 years, mostly on weapons-possession charges.

(on camera): Right now, federal agents scrambling to find out exactly who he may have sold those badges to and who would be interested in buying them. Khorosh's lawyer calls the badges collectibles. Wolf?

BLITZER: Deb, what about the quality of those badges? On television, the video you've been showing us, they look pretty authentic. They look pretty good, but what about up close? What do authorities say -- could they pass muster and actually get someone through security lines?

FEYERICK: There's absolutely no question that they could pass muster. And as a matter of fact, among the counterfeit goods, were actual leather cases with the imprint of the agencies stamped on them, and the head of I.C.E. here in New York said that nine times out of ten those badges would likely pass scrutiny.

I even had him hold up his own badge, and it was remarkable just how close they looked. You'd have to know the agency in order to distinguish it, and if you're holding that thing and flashing it up past some sort of a guard, chances are you're going to get in wherever you need to go.

BLITZER: That's pretty scary -- pretty scary stuff. Deborah Feyerick reporting for us from New York. Thank you, Deborah, very much.

And as we continue our "Security Watch," both the U.S. and British Navy's are looking into an American aircraft carrier and an intruder who managed to get on board before he was detected. Our Pentagon correspondent, Barbara Starr, has details.

(BEGIN VIDEOTAPE) BARBARA STARR, CNN PENTAGON CORRESPONDENT: U.S. and British military and law enforcement personnel are investigating a security breach last month that resulted in an intruder boarding the USS Harry Truman, a Navy aircraft carrier, as it was anchored off Portsmouth, England.

Now, although the man was determined not to be a terrorist, the U.S. Naval Criminal Investigative Service and Royal Navy Security personnel are investigating the incident, trying to determine how it all happened. The Truman was anchored slightly offshore when the incident took place. The man apparently breached British security at the Portsmouth naval docks, then boarded a small ferry boat that was taking crew members out to the ship, and then got on board the Truman. He was on board for up to half an hour, officials say, before security personnel on the ship determined there was an intruder.

This is considered a serious breach of security because ever since the bombing of the USS Cole almost five years ago in Yemen, in which several U.S. Navy sailors were killed, the security around U.S. Navy warships, when they are in port, is supposed to be very tight. So U.S. and British officials trying to determine, even though the man was not a terrorist, how this security breach happened.

Barbara Starr, CNN, the Pentagon.

(END VIDEO CLIP)

BLITZER: Thanks very much, Barbara, and please stay tuned to CNN day and night for the most reliable news about your security.

When we come back, it's not only the military. Government computers also hacked, allegedly by a teenager. Our "Security Watch" continues.

Also ahead -- we're expecting an announcement regarding the murders of those two young girls. That announcement coming up this hour. We'll bring you the news conference as soon as it starts.

And later, the last good-bye. After three decades, troops who made the ultimate sacrifice for their country are laid to rest. We'll go live to Arlington National Cemetery.

(COMMERCIAL BREAK)

BLITZER: Welcome back. A dramatic case spotlighting the vulnerability of key computer systems to hackers. The FBI confirms to CNN a story in "The New York Times" about a major breach of a computer company, and it appears that attack was just part of a much larger operation.

CNN technology correspondent Daniel Sieberg has the latest.

(BEGIN VIDEOTAPE)

DANIEL SIEBERG, CNN TECHNOLOGY CORRESPONDENT: The details in this case are still coming out in bits and bites, but it's certainly setting off a lot of alarm bells in the cyber-security community. Here's the story: basically, about a year ago, what they believe to be a 16-year-old hacker was able to break into some computer systems at a company called Cisco. Cisco is responsible for a lot of the routers and programs that control the way computers run on the Internet.

Now, this "New York Times" article that came out today also is reporting that this 16-year-old had been arrested in Sweden, and that they are looking to see whether he has any other accomplices who may have been part of a much wider investigation. And that's what we're learning today. So, this case expands beyond just this Cisco theft of code, and to perhaps beyond into military system computers, NASA, various research and government agencies. That a lot of the information may have been taken from a number of these companies by this 16-year-old hacker and perhaps others as well.

I did speak to someone at White Sands Missile Range, one of the organizations listed in the "New York Times" article. They said they did have a break-in, about a year ago, in April of 2004. But the data that was stolen was not considered classified or sensitive, it was some weather forecasting information. But it is really concerning to a lot of cybersecurity experts, who say this illustrates how a lot of government computers may be vulnerable, because they are connected to the Internet. And the ease with which apparently this 16-year-old was able to get some of this information.

Again, the details on this information are not known yet on just how wide this scope is. But it's concerning to them how he was able to do this, and that's something they're going to be looking into in the future. The FBI says they're working on a global effort here. That the activity at least for now has stopped because they have got this 16-year-old. But they're certainly going to be look into it more in the future. Back to you.

Daniel Sieberg, thanks very much. Our technology correspondent.

Earlier, as you remember, we reported on another story with huge security implications, the arrest of a New York City man, who allegedly had 1,000 phony law enforcement badges that he was wanting to sell. We also heard the report about that man who slipped aboard the U.S. Aircraft Carrier the Harry Truman without being detected. Let's get some analysis now on that.

Joining us our CNN security analyst Richard Falkenrath. Richard, thanks very much for joining us.

Let's go through one by one by one. A 16-year-old kid in Sweden hacks into some of the most sensitive computer systems that the U.S. government, the federal government has.

What's going on here?

RICHARD FALKENRATH, CNN SECURITY ANALYST: It's really not that uncommon. This sort of thing happens a great deal. Our security systems around our computers are not as good as we'd like them to be, even in the federal government. And because they are connected to the Internet, so that lots of people can access them to work, they're also vulnerable when someone can figure out a way to penetrate the cybersecurity. It's a very difficult area here, and the federal government frankly has had a tough time keeping up with the pace of technology and a reliance on computer infrastructure.

BLITZER: What do you do? You go out and hire 16-year-old hackers and you put them on the government payroll to try to figure out how to stop this?

factional: We did do some of that. We have employed a few sort of former hackers, who come over and start helping the government both the Department of Homeland Security and the FBI, understand the nature of the threat so that we can figure out how to respond to it and investigate it.

BLITZER: You served on the National Security Council in the first Bush administration. As you know, our viewers listening to this, I'm listening to this, I'm hearing about some kid in Sweden, probably in his bedroom in pajamas, hacking in to some of these major government labs and security systems. And I'm saying this does not instill a whole lot of sense of confidence in the way our government operates in the world of these computers.

FALKENRATH: Well, you're right. It doesn't. There's a lot of different computer systems out there. Not all of them are tightly secured. The most tightly secured computer systems in the government are not on the Internet. They're completely separate system. There's a fireball between them and the Internet, so they're hard to get into. That also makes them not very useful. Not very many people can access them.

BLITZER: The other story that's pretty shocking, these thousands of badges, they look so authentic, they feel authentic. That some guy got manufactured and is ready to sell, or we don't know what the -- what the purpose of it is, but by all accounts they really are worrisome, that in the hands of bad guys they could penetrate all sorts of security lines.

FALKENRATH: Yes, this one's a doozy. I mean, these are incredible. This number of badges, this quality of badges in the hands of a Russian smuggler is quite extraordinary. And it's good that the -- our police got their hands on these things, but we've got to assume that there are more out there. They appear to be manufactured abroad, which I was worried about. The shipment seems to have come from Taiwan. And that tells me that somewhere outside the United States is a factory making badges like this that are able to mimic our own law enforcement badges.

BLITZER: So, in other words they get one real one, whether from NYPD or someplace else or an FBI badge or a DEA badge, they get one and then they can copy it and make thousands.

FALKENRATH: That's right. And sell them and make money. Now, probably, there's this organized crime trying to make money and engage in theft and...

BLITZER: But terrorists can buy these as well.

FALKENRATH: Absolutely, they could.

BLITZER: This is a nightmare scenario potentially.

FALKENRATH: It is. And what it shows you is the importance of identification documents, credentials, and badges in the modern age. This is why so much attention is going on identification systems right now, with biometrics, the Real I.D. Act, this problem with badges. We rely very intensively on systems of identification for our security, and when those systems are breached everything can fail.

BLITZER: Now, what do you make of this other story that some guy in England gets on board the USS HARRY TRUMAN, this huge aircraft carrier, with enormous security all around it. And he manages to get on this aircraft carrier. They find him. But who knows what kind of damage he could have done if in fact he wanted to do damage?

FALKENRATH: That's right. This should never happen. I mean, these are the crown jewels of the U.S. Navy. And there's no way that a foreign person like this should be able to penetrate that security. I hope someone loses their job for this in the Pentagon.

BLITZER: Because it sends a horrible signal out there that, you know what, if the Harry Truman, the USS Harry Truman, this huge aircraft carrier, there's only about a dozen of those, that the U.S. Navy has, is potentially vulnerable, who knows what else is vulnerable?

FALKENRATH: That's right. This is completely unacceptable. Now, this seems to be a kind of sport in Britain. People break into things that they're not supposed to, like Buckingham Palace, people break into it just to see that they can do it. But still the U.S. Navy should not allow this. Clearly, there was multiple failures in the security system around that ship, and I'm sure it's being tightly investigated over at the Pentagon right now.

BLITZER: And I'm sure if you were still in the NSC you'd be investigating it as well.

Richard Falkenrath, as usual, thanks very much.

FALKENRATH: Thanks, Wolf.

BLITZER: When we come back, murder and mourning in Zion -- Zion, Illinois. And now there's word of a potential arrest. We're standing by in the next few minutes for a live police news conference with all the latest developments in the murder of those two little second-grade girls.

Plus, we'll take you out to Riverside County in California, where deputies made a shocking discovery after responding to a 911 call.

Also, there are new developments to that story we brought you yesterday. The mayor of Spokane, Washington speaking out now about allegations leveled against him by a local newspaper. We'll tell you what's going on.

(COMMERCIAL BREAK)

ANNOUNCER: From our Studios in Washington, once again, Wolf Blitzer.

BLITZER: Welcome back.

There are new developments in the case of those two little girls who were stabbed to death in a park in Illinois. We're expecting a news conference, momentarily, to begin. We'll go there live, to Zion, Illinois, the moment it begins.

First, though, let's get a quick check of some other stories now in the news.

Prosecutors in Atlanta say they'll seek the death penalty against accused courthouse shooter Brian Nichols. He was in court for proceedings today with his legs in shackles. Nichols is accused of the March killings of a judge, a court reporter, and two others.

The so-called runaway bride, Jennifer Wilbanks, has signed herself into an inpatient treatment program to deal with what a statement calls "physical and mental issues." Wilbanks made headlines when she disappeared from her suburban Atlanta home only days before her wedding, prompting a massive search.

Off the triple-crown trail: the horse, Bellamy Road, the seventh place finisher at this weekend's Kentucky Derby. The 3-year-old horse ,owned by Yankee's boss George Steinbrenner, has what his trainer described as a minor injury in his left front leg. Bellamy Road was under consideration for the Preakness.

Now, let's take a quick look at some other news making headlines around the world.

(BEGIN VIDEO CLIP)

(voice-over): Hundreds of pro-independence demonstrators clashed with riot police in Indonesia's far eastern province of Papua...

(END VIDEO CLIP)

(on camera): We want to interrupt that report to go out to Zion, Illinois. This news conference with local law enforcement authorities just beginning. Let's listen in, see what they have to say. We expect to hear from police chief Doug Malcolm.

MICHAEL WALLER, LAKE COUNTY STATE'S ATTORNEY: Before I get started, let me make a couple of points. It's our goal to give you as much information as we can. However, we're not going to be able to answer all your questions.

We're announcing today that charges are being filed in the horrific murder of the two young girls in Zion on Mother's Day. But as most of you, or at least those of you who are from Illinois know, there are certain rules about what states attorneys can talk about at a news conference. And ordinarily I would be able to talk in more detail about the facts of this case, but we have not had a bond hearing yet for this defendant. And I will advise you as to when the bond hearing is going to be held, and after the bond hearing, which will be held tomorrow, we'll be able to talk in more detail about the evidence.

Today we are filing two counts of first degree murder against Jerry Branton Hobbs III of Zion. He's charged in the murders of Laura Hobbs, his daughter, age nine and Krystal Tobias -- excuse me -- Laura's age eight. Krystal Tobias, age nine, who was Laura's best friend. He's charged with the stabbing and beating death of both girls, which occurred on Mother's Day.

I'd like to commend the Zion police department, Chief Doug Malcom, the major crimes task force, Commander William Valco (ph) for the professional and thorough investigation they've conducted since the bodies of the girls were discovered yesterday morning. They've literally worked without sleep.

This horrific crime has terrorized and traumatized the Zion community and, I think it's safe to say, people of good will everywhere. The arrest today is the first step in bringing this defendant to justice. As you may be aware, this defendant is eligible for the death penalty. I've been the state's attorney for 15 years in Lake County, and I have a protocol that I follow. I've found that it's not a good practice to make such a decision in the heat of the moment, and we will make that decision after the investigation of this case is completed and after we do a thorough background investigation of this defendant. And it's important for me to make the point that this investigation is continuing.

The reason we're holding this press conference today is obviously because of the great interest and the need to keep the public informed, but also to try to bring some sense of relief to the people of Zion that this defendant is in custody. There will be a bond hearing tomorrow morning at 10:00 a.m. in the Lake County courthouse in courtroom 120. At that point, we will present evidence to the judge that will detail the evidence against this defendant to date. And as I said, tomorrow we'll be available to discuss evidence with you.

I'm going to introduce the mayor and the coroner in a second, and then we will answer the questions to the extent that we can. Let me turn this over to the mayor of Zion.

MAYOR LANE HARRISON, ZION, ILLINOIS: Thank you. I would like to take this opportunity to thank several agencies and people who have worked so diligently in bringing this person in: the state's attorney's office, the Zion police department, the Lake County major crimes task force -- who diligently gathered evidence -- the Lake County coroner's office, the Zion E.S.D.A. -- which is a volunteer group of individuals that were out there all night with dogs gathering evidence for the crimes task force -- the Zion elementary district 6 schools -- who took the crisis counseling of children to heart today. I, in fact, am a schoolteacher in that school district, and I know how effectively these children were dealt with today and yesterday as they tried to grieve and get through this process. And there's a lot more to go there yet. And I would like to thank all the departments of the city of Zion.

But most of all, I'd like to thank the citizens of the city of Zion for not taking this to a level that could have been something that would have been -- something that would have exacerbated this situation and made it worse than it is. It's horrible. People had questions. People still have questions. We will all have questions until the day we die. But I'm just thankful to God that we were able to get through this in just a couple of days, and now the really tough work begins for Mr. Waller and his crew. And we just want to thank them for their diligence, and we know that this will have a good ending for the citizens and the people and the children of Zion. And I would like to introduce the coroner, Dr. Keller.

DR. RICHARD KELLER, LAKE COUNTY CORONER: Dr. Richard Keller, Lake County coroner.

Basically, what I will do is just reiterate the statements that I and my office has made before, that these young girls died of multiple stab wounds. I know that many of you have sought more detail, but, again, as Mr. Waller had stated, the investigation is still ongoing, and we will not be giving out much more detail than that, particularly until after the bond hearing and as that investigation progresses. Thank you.

QUESTION: Mr. Waller, can you give us any idea as to a motive? First of all, did he confess, and second of all, can you give us any motive at all? Trying to get back his wife or anything...

WALLER: I can't answer the first question. I think you'll get the answer to that question tomorrow morning after the bond hearing. And you know, I've been in this business for over 30 years. This is probably the most horrific crime I've ever seen, and I've had many other news conferences, have made the statement that there's no rational explanation or reasonable motive that can be ascribed to an act of horror like this.

QUESTION: What kind of criminal background does he...

WALLER: Well, he does have a criminal background, and again, that's something that we'll be able to talk about more tomorrow.

(CROSSTALK)

QUESTION: Were the two girls lured to the area? Were they surprised there? Were they killed where their bodies were found? Help us and help parents in the area understand...

WALLER: Well, they weren't lured to the area. This isn't a crime committed by a stranger. This is a crime committed by the father of one girl, and he obviously knew the other girl. The murder occurred in the general vicinity of where the bodies were found.

QUESTION: Was he riding a bicycle with them? Did he lead them into the woods?

QUESTION: No. He encountered them in the woods, and that's where the incident took place.

QUESTION: What was the scenario? Can you tell us about the scenario of how this did come about?

WALLER: Well, just, generally, I can tell you that the girls -- and I think you've probably reported on a lot of it. They were -- you know, it was a beautiful day on Sunday. It was Mother's Day, and they were riding their bikes, visiting friends, and at one point they ended up in the park, and they were encountered by the defendant, and that's where the murders occurred.

QUESTION: Sir, was this premeditated on his part, or was it just the chance of the moment, something that happened that triggered it?

WALLER: You know, I don't think we can get into that.

QUESTION: Do you know why he was in the woods?

WALLER: He was looking for his daughter.

QUESTION: Mayor Harrison, the fact that this was not, according to the allegation, a random act, that it is clearly rooted in some domestic strife -- that has to make a big difference to your community.

HARRISON: I would think it would make a tremendous difference to the community, knowing that there isn't a randomized kind of situation where someone laid in wait, if you will. More importantly, the person who committed the crime's in custody, and that should bring a great deal of comfort to our community.

QUESTION: Has he been in custody the entire time since he found the girls?

WALLER: No.

QUESTION: Was he considered a suspect right off the bat?

WALLER: No.

QUESTION: Mr. Waller, were the girls camping out? I know they didn't come home for dinner. They were looking for them. (INAUDIBLE) went into the woods looking for them. Was he trying to...

WALLER: No, they weren't camping out at -- no.

QUESTION: When did you begin questioning him?

WALLER: Sometime yesterday.

QUESTION: What time yesterday?

WALLER: I don't have that. QUESTION: Do you have a better idea of what time the murders took place now?

WALLER: Well, we believe they took place sometime early evening hours of -- early evening hours.

QUESTION: Not the middle of the night, as had previously been speculated?

WALLER: Right. I'm not really that concerned about speculation.

QUESTION: Has a weapon been recovered?

WALLER: No.

QUESTION: Mr. Waller, you said he went into the woods looking for them -- For His daughter. Was this after she had been reported missing?

WALLER: No.

QUESTION: Did he come to the police?

WALLER: She was reported missing after his actions.

QUESTION: Did he come to the police saying "I have found them"? Is that essentially what happened?

WALLER: Well, no. They -- well, yes. They called -- he was with another individual, and after they found the bodies -- after the bodies were found, a call was placed to the Zion Police Department.

QUESTION: Can you describe his reaction to finding the body of his daughter and how that might or might not have been what officers expected?

WALLER: Well, I'm not -- I don't believe I'm really familiar with how he reacted, but I think it's safe to say that his reactions to questions piqued the officers officers' interest in questioning him further.

QUESTION: Immediately? Immediately?

WALLER: Well, over a course of time. You know, it's standard procedure in a homicide investigation is of course to talk to the family members. And obviously, in this case he wasn't the only family member we talked, to and we're still talking to family members to try to get as much information as possible. But his reactions and his answers were such that they interested the police in asking further questions that -- he -- other people -- other family members that were questioned didn't pique the officers' interest like his answers did.

QUESTION: You said that they were...

QUESTION: Can you tell us when?

WALLER: No, I don't think I can get into it any more than that.

QUESTION: You said that they weren't camping...

WALLER: Just a second.

QUESTION: You said that they weren't camping, but they were -- he went in to find the.

WALLER: Well, they were just -- they were in the course of their activities on Sunday. You know, as -- they were riding their bike. There was one bike. They were riding it together. They were visiting friends. They went into the park. There's a series of bike trails in the park, and they were -- that's where they were.

Somebody back there had a question?

QUESTION: Why did the investigators go back out to the Hobbs' house this afternoon. It look like they pulled out four bags of potential evidence?

WALLER: Well, it's -- again, that's pretty standard. You go in the first time, you develop more information, and then you go back and look for other evidence as you develop information.

QUESTION: Was Mr. Hobbs with him at that time?

WALLER: I'm sorry. Let me ask...

QUESTION: The father-in-law -- the father-in-law, or one of the girls' grandparents seemed to suggest that he was with Jerry most of the day and accounts for most of his time. Have you talked to the grandfather?

WALLER: Certainly.

QUESTION: And does...

WALLER: Well, we believe that we have a compelling case against this defendant, and all of that will come out in due course.

QUESTION: Can you tell us if Mr. Hobbs was with any of the investigators who returned to the scene of the crime?

WALLER: At what point? Yes, he returned this morning with investigators, early morning.

QUESTION: Has he been cooperative somewhat?

WALLER: Somewhat.

QUESTION: So he returned to the scene of the crime with the investigators to point out certain...

WALLER: Yes, he did.

QUESTION: Was he mad that the girls didn't come home from dinner or was this premeditated and he knew he wanted to do something on Mother's Day or -- anything at all?

WALLER: None of that -- and I don't think I can get into it anymore. There isn't any rational explanation for what happened. There wasn't -- this occurred before they were were -- before his daughter was supposed to return home. As I said before, you know, if you look at his actions and what he caused, you know, you can probably -- we can engage in speculation as to what his thought process was before. We don't know exactly what it was. But it certainly -- I think it's safe to say that he wasn't probably celebrating Mother's Day the way the rest of us were.

QUESTION: Was there at any point, when your investigators became convinced that this was in fact the suspect? Or was there any concern that you weren't able to tell this community soon enough that there was someone in custody, that there wasn't a killer at large?

WALLER: Well, the only thing I can tell you is that I'm informing this community at the earliest point that I could, which is right now.

QUESTION: He did...

QUESTION: (OFF-MIKE)

WALLER: I don't know.

QUESTION: So she could have been just a victim of poor circumstances, Krystal?

WALLER: She could have been. And I think it's safe to say that both these girls are. I'm sorry, Jay.

QUESTION: ... some kind of dispute between the girl's mother and your suspect play any role in this?

WALLER: Well, I think that'll perhaps will come out tomorrow. I don't want to get into that today.

QUESTION: Was Mr. Hobbs taken into custody or did he...

WALLER: No, he volunteered came. He came down with the other family members for questioning.

QUESTION: When was that?

WALLER: Yesterday.

QUESTION: With his cooperating -- with the fact that he's so cooperative, and I know you said it's early, but would that play any role in whether you decide not seek the death penalty in this case?

WALLER: No. What I -- What I do is when this investigation is completed, we'll thoroughly analyze this case, do a complete investigation of his background, ask his defense attorney to bring any information to me that might bear upon that decision ultimately, and then make a decision. QUESTION: Mr. Waller has he admitted to this?

WALLER: You know, I think you're going to have to wait until tomorrow at the bond hearing. Unfortunately, the Illinois Supreme Court says that I can't answer your question. It's not me. It's the Illinois Supreme Court.

QUESTION: The girls didn't stumble upon James in the forest, he came upon them. But they didn't catch him do...

WALLER: Right. It is our understanding that the evidence is that he went looking for them.

QUESTION: Are you convinced he acted alone?

WALLER: Yes.

QUESTION: Where is he right now?

WALLER: He's in custody. He's in the Zion Police department.

QUESTION: And there was only one bike, is that right -- one bike?

WALLER: Yes. The girls were riding one bike.

QUESTION: Do you know if he's going to be transferred tonight?

WALLER: I don't know when he is. I know that the bond hearing will be tomorrow morning. So he'll be -- it will probably be tomorrow morning.

QUESTION: So he would spend the night at the Zion Police Department?

WALLER: You know what, Jackie (ph), I don't make that decision. So you probably should -- maybe after this is over you can ask the Zion Police or the Major Crimes Task force and they would tell you. Yes, ma'am.

QUESTION: What's been the reaction from the family?

WALLER: You know, I don't know. I know that members of the Major Crime Task Force have talked to them and are continuing to talk to them about other details. So, I don't know.

QUESTION: Dr. Keller, it was mentioned that with the beating and stabbing, I asked you today if there's any more trauma. Can you elaborate a little bit more now that it's come to light that there was a beating as well?

DR. RICHARD KELLER, LAKE CO., ILLINOIS, CORONER: Again, a lot of the findings at autopsy and during our exam are a part of the ongoing investigation. Yes, there was bruising from -- you know, from blunt trauma of some sort. But as to any more details than that I really can't give them. WALLER: And I forgot to mention we also have a photo of the defendant.

QUESTION: Did you say the birth date (INAUDIBLE).

WALLER: Did we distribute the news release? Oh, OK. We have a news release, and it's in the news release. Any other questions?

QUESTION: Are you going to be having a news conference after this one?

WALLER: We'll be available tomorrow to answer questions.

QUESTION: It's going to be Wakegen (ph)?

WALLER: It's going to be in Wakegan in courtroom 120. There's a news release here with all the information in it, including his date of birth and address, which I think I forgot to mention, and there's a photograph of him.

BLITZER: And so there you have it, Michael Waller, he's the Lake County, Illinois state's attorney making the formal announcement. Two counts first degree murder filed against 34-year-old Jerry Hobbs. He's the father, the father of one of those two little girls, Laura Hobbs, 8-years-old. And Krystal Tobias, her best friend, 9-years-old, whose bodies were found only yesterday.

No rational explanation for this murder, according to the state's attorney, Michael Waller.

Chris Lawrence is our correspondent, who's been on the scene from the beginning. A horrendous case. The state's attorney, you heard say he would be eligible for the death sentence in the state of Illinois if they decide to pursue that specific -- that specific course of action.

But the father, as you've been reporting all day, has been a so- called person of interest by local law enforcement ever since this case basically erupted. I assume, Chris, because of his criminal record. Is that what's going on?

LAWRENCE: That's right, Wolf. They wouldn't exactly touch on much detail in his criminal record, but independently through the Wichita County clerk's office and the D.A. in Texas, we have amassed sort of a file on Jerry Hobbs. He has an extensive criminal record that goes back to about 1990 and just continues through the years. Nearly a dozen convictions over the last 15 years. Anything from driving with a suspended license and possession of marijuana up to aggravated assault. It was that most recent charge in around 2002, he was convicted of aggravated assault, that landed him in jail in 2003. And he was just released about four weeks ago, and then moved up here to Illinois, where his daughter Laura lived.

BLITZER: Chris Lawrence reporting for us. We'll check back with you, Chris. A horrendous, horrendous case. Our hearts go out to those families. Once again, Jerry Hobbs, 34 years old, the father of one of those two little girls, now charged with two counts of first-degree murder. 10:00 a.m. local time, 11:00 a.m. Eastern time tomorrow morning, bond hearing will be set out in Illinois. We'll have more on this story as it becomes available.

When we come back, another horrific scene discovered after police respond to a mysterious 911 call. The bodies of three adults and three children found at a ranch southeast of Los Angeles. We'll go live to the scene with the latest developments.

Also, a final farewell. The families of four Americans killed in action in Vietnam are finally getting some closure.

(COMMERCIAL BREAK)

BLITZER: Deputies responding to a 911 call in Southern California made a truly shocking discovery. Let's go live to CNN's Ted Rowlands. He's joining us from Riverside County. That's southeast of L.A.

What was that discovery, Ted?

TED ROWLANDS, CNN CORRESPONDENT: Well, Wolf, when investigators arrived here, they found the bodies of three adults and three children, and they're still going over the crime scene at this point.

Here's what we know. At about 4:30 this morning, a 911 call came from inside the house. No one was on the other line of the 911 call, but the operator heard disturbing noises. They sent crews out. That's when they made the grisly discovery.

The sheriff here in Riverside County has confirmed that the house is owned by David McGowan. He's one of their own, a district attorney's office investigator in this area.

Neighbors say McGowan lived here with his wife, Karen, and three young children, two girls and a boy. Homicide investigators are on scene. They're calling it a homicide at this point, but a spokesperson said they have not ruled out murder-suicide. They said there's no sign of forced entry, no one is in custody, and they say they're not looking for anyone at this point, but the investigation continues, and we expect a news conference at the top of the hour to answer some of these questions -- Wolf.

BLITZER: We'll be watching that with you, Ted. Thanks very much.

When we come back, a long journey home after 38 years. The remains of troops killed in Vietnam are buried at Arlington National Cemetery.

(COMMERCIAL BREAK)

BLITZER: In this 30th anniversary year of the end of the Vietnam War, a very painful final farewell for four American servicemen killed in action in a jungle battle. Brian Todd is over at nearby Arlington National Cemetery. He's joining us live with the story -- Brian.

BRIAN TODD, CNN CORRESPONDENT (voice-over): Wolf, today we saw one of those lasting images from a distant war, a ceremony where family members welcomed their loved ones home and bid them farewell at the same time.

(BEGIN VIDEOTAPE)

TODD (voice-over): Irene Healea always knew what happened to her brother, but had no finality. On this idyllic morning at Arlington National Cemetery, she got it.

IRENE HEALEA, HEINZ AHLMEYER'S SISTER: My brother was a great guy. He was a hero.

TODD: Healea and members of three other families waited 38 years to the day for this moment, 38 years since her brother, U.S. Marine Lieutenant Heinz Ahlmeyer Jr., landed on one of those untakable hills in Vietnam.

May 10th, 1967. Lieutenant Ahlmeyer and six others move on to a ridge line near the Laotian border. Recon Team Breaker, as they're called, is ordered to gather intelligence on enemy infiltration routes. Ahlmeyer has only been in country for about two weeks, and is on his first combat mission.

One member of his team knows how dangerous this will be. In a letter home written the night before, Sergeant James Neil Tycz tells his parents, "Our lieutenant passed me the word that we go in at 7:30 a.m. tomorrow. None of us want to go, but that's our job, and I pray I will never fail to do it."

The next day, on that hill, published reports say a force of at least 30 North Vietnamese troops practically stumbles over the seven Americans. The Marines fight nobly, but can't withstand the onslaught.

BRITT FRIERY, MEMBER OF "RT BREAKER": Before we could take them out, they had fired an automatic burst that wounded Lieutenant Ahlmeyer very severely, wounded Sergeant Tycz as well.

TODD: Ahlmeyer, Tycz, Navy Corpsman Malcolm Miller and Marine Lance Corporal Samuel Sharp Jr. are killed almost immediately. At least one helicopter that moves in to evacuate them is shot down. The hill is napalmed. A survivor on the ground frantically radios for help.

RON ZACZEK, MEMBER OF RESCUE TEAM: And he kept saying, you know, OK, you've got to get us out, we're burning up, we're burning up. You've got to come in, you've got to get us out.

TODD: The remaining Marines are rescued, but the hill is so dangerous, the military says that the bodies of the dead must be left there.

HEALEA: I really didn't think, you know, after all these years, that they were going to -- that they would find my brother, but I'm very, very grateful.

TODD: Earlier this year, Healea and relatives of the three others get word: Diplomacy has paid off. Excavation teams were finally allowed on that hill. Remains of teeth and other markings have been identified. Her brother is coming home.

Heinz Ahlmeyer Jr., James Neil Tycz and Malcolm Miller now rest at Arlington. Samuel Sharp Jr., honored in this ceremony, is buried back home in California.

Another man on that hill remains haunted.

FRIERY: I didn't think I would get out of there. When we were in there, we thought we wouldn't get out of there.

(END VIDEOTAPE)

TODD: And so many remains throughout Vietnam. According to the Department of Defense, more than 1,800 Americans are still listed as missing from the Vietnam War -- Wolf.

BLITZER: Brian Todd, thanks very much.

That's all the time we have. "LOU DOBBS TONIGHT" starting right now. Lou is in New York. He's joining us -- Lou.

LOU DOBBS, HOST, "LOU DOBBS TONIGHT": Wolf, thank you very much. Have a great evening.

END

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired May 10, 2005 - 17:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, HOST: Happening now, police in Zion, Illinois set to announce new developments in the case of the two stabbed little girls at a park. We'll have live coverage coming up this hour. Standby for hard news on WOLF BLITZER REPORTS.
(BEGIN VIDEOTAPE)

BLITZER (voice-over): Badge bust -- the real police arrest a man with a huge supply of very good fake I.D.s.

UNIDENTIFIED MALE: Over 1,300 very good counterfeit badges representing over 35 law enforcement agencies. How many more are out there and in who hands?

Close combat -- the fighting is fierce and face to face. New pictures from the military offensive in Iraq.

Final salute -- they fell in battle on hill 665. Four decades later they're at home, and at rest.

(END VIDEOTAPE)

ANNOUNCER: This is WOLF BLITZER REPORTS for Tuesday, May 10, 2005.

BLITZER: Thanks for joining us. A person of interest and word of pending charges in the case of those two murdered little girls in Zion, Illinois. Police have questioned the father of one of the girls.

CNN's Chris Lawrence standing by live on the scene with the latest -- Chris.

CHRIS LAWRENCE, CNN CORRESPONDENT: Well, Wolf, that news conference is set to begin in just about 45 minutes. But you know, cut through all the talk about persons much interest and suspects and all of that. What people here want to know is is there some random person, some random killer, who murdered these two girls and is still out there a danger to other children here?

Police may be very close to answering that question for them. Right now what we have learned is that they have been talking to and have identified as a person of interest the father of one of the girls. His name is Jerry Hobbs. We've also learned that he does have a criminal history in the state of Texas, and family members tell us he was released from prison just about a month ago and then moved here to Illinois.

Again, the police will be holding a news conference to give some more details on this situation. And to bring you up to date, these are two little girls who are second-graders and best friends. They were playing outside on Mother's Day, never came home when they were supposed to. Their bodies were then found the next morning in a park very close to where they go to school and live. And that set this community off. Parents were literally terrified. Schools were assigning escorts to get the children home safely. Many parents were literally walking their children to and from the front door of the school, very scared in a very small town like this, to think that someone could be out there and be a danger to their children. Now we may have a lot of those answers to the questions that the parents have been asking for the last two days -- Wolf.

BLITZER: The father, Chris, got out of prison, I take it, convicted of a charge of aggravated assault? Is that what we know about his criminal background?

LAWRENCE: That's what we are getting from the file companies, from the search engines, so to speak. When you do a data search on someone's criminal history. We are in the process of trying to confirm that, and secondary source that with the actual D.A. of that Texas county. But from what we know right now, it looks like he has a lengthy criminal history in the state of Texas. And relatives do confirm that he did get out of prison about four weeks ago and then came back here to Illinois, where his daughter lives.

BLITZER: Chris Lawrence, we'll be watching these developments together with you. Chris Lawrence on the scene for us. And we'll stand by for that news conference coming up later this hour. Once the local authorities start speaking to you, we'll bring it to you live.

Meanwhile there, was a gruesome discovery in rural Riverside County, California. Police responding to a 911 call found the bodies of three adults and three children inside a sprawling ranch near the community of Pine Meadow. That's about 100 miles southeast of Los Angeles. Officials say the victims suffered head trauma, but did not say how they died or reveal their identities. The home is owned by an investigator with the county district attorney's office. We'll have a live report on this gruesome story. That's coming up later this hour as well.

In addition, we're following other stories, including in Iraq where they call it "Operation Matador." U.S. troops are taking the bull by the horns in Iraq's rugged Anbar Province. It's an all-out assault on insurgents, who in turn are fighting back with everything apparently they have.

Let's go live to our senior Pentagon correspondent, Jamie McIntyre -- Jamie.

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: Well, Wolf, the Pentagon says that "Operation Matador" is a dagger aimed at the heart of the insurgency in western Iraq.

(BEGIN VIDEOTAPE)

MCINTYRE: These first fleeting glimpses from the front lines give a flavor of the remote area of western Iraq, where "Operation Matador" has been unfolding, but show nothing of the ferocity of the fighting of the past three days, as U.S. Marines engage a motivated and well-trained enemy.

BRIG. GEN. JAMES CONWAY, U.S. MARINE CORPS: There are reports that these people are in uniforms, in some cases are wearing protective vests. And there's some suspicion that their training exceeds that of what we have seen with other engagements further east.

MCINTYRE: According to journalists embedded with the U.S. Force of some 1,000 Marines the toughest battle came Monday during a night of gritty house-to-house urban warfare.

JAMES JANEGA, CHICAGO TRIBUNE REPORTER: In Ubedi (ph) it was face-to-face combat. The firing, as I said, was quite intense. They went there in armored personnel carriers with tanks. They had air support from F-18s and from Huey Cobra Gunships.

MCINTYRE: The operation kicked off Saturday when the Marines crossed the Euphrates River and set up a blocking position south of the Iraqi town of Ramada. But instead of running the enemy stood and fought. So far the U.S. says as many as 100 insurgents have been killed.

UNIDENTIFIED MALE: If they are intending on being martyred, that has to be cranked into the equation with this particular enemy.

MCINTYRE: The Pentagon says since last November's Fallujah offensive the center of resistance has moved west, regrouping in the desert area near the Syrian border, where smuggling routes provide easy access to money and arms. There has even been a reported sighting within the past three weeks of Iraq's most wanted terrorist, Abu Musab al-Zarqawi. But he is said not to be a target of the operation.

UNIDENTIFIED MALE: It would be a welcome event to come across him or his body and find him in that region, but that's not the purpose of the operation.

(END VIDEOTAPE)

MCINTYRE: And in what appears to be a desperate move, rebels have kidnapped the governor of the region and are holding him hostage demanding an end to the U.S. offensive. The U.S. military says it doesn't deal with kidnappers, and some observers believe that the abduction is linked to a feud between the governor's tribe and one that backs Zarqawi -- Wolf.

BLITZER: This operation taking place not far from the Syrian border, as you reported, Jamie. What are they saying at the Pentagon about the involvement of the Syrian Government per se in allowing these insurgents, these foreign fighters, as they're called, to come into Iraq from Syria? MCINTYRE: Well, they're still complaining about the fact that Syria is not doing essentially anything to stop the flow of arms, money, and as you said, fighters themselves from going in and out of Iraq across that border. I think the U.S. military realizes it's going to be its job and the Iraqi forces' to eventually seal that border. They're complaining to Syria, but other than that they're not saying too much publicly.

BLITZER: Jamie McIntyre with the latest at the Pentagon. Jamie, thanks very much.

And while they may be hard pressed right now in western Iraq, the insurgents are keeping up their attacks in the capital, that would be Baghdad. Three more bombs blew up there earlier today. The worst was a suicide strike which killed at least seven people and wounded 14 others. Police say the target may have been a U.S. military convoy.

Coming up -- our CNN security watch. Hundreds of fake badges, police badges, seized in a bust. Why officials say the case could be devastating to homeland security.

Also, an intruder caught on board a U.S. aircraft carrier. How did he get there? What does it mean for security?

And we're standing by once again for that news conference on the case of those two little girls murdered in Zion, Illinois. There are new developments. They're expected this hour. We'll bring you the news conference live once it starts.

(COMMERCIAL BREAK)

BLITZER: Just want to remind our viewers, we're standing by for a live news conference from Zion, Illinois. We expect law enforcement authorities there to update us on their search for the killer or killers of those two little girls, those 8 and 9-year-old girls, their bodies, discovered yesterday. We'll go to that news conference this hour as soon as it begins.

In our CNN "Security Watch," a stunning development in New York involving the arrest of a Russian man with hundreds of fake law enforcement badges. One official says it could be, and I'm quoting now, "devastating to homeland security."

CNN's Deborah Feyerick has been covering this story. She's joining us now, live, from New York. Deb?

DEBORAH FEYERICK, CNN CORRESPONDENT: Well, Wolf, for federal officials, this is one of their biggest fears, the possibility the terrorists may use phony badges to pose as real agents. Now, yesterday U.S. marshals seized some 1,300 counterfeit badges from 35 different law enforcement agencies, everything from the FBI, drug enforcement, to secret service and customs. They also found two manuals detailing the size and dimensions of each and every one of those badges.

Now, the head of immigration and customs enforcement in New York City calls the counterfeits, quote, "very, very good."

(BEGIN VIDEO CLIP)

MARTIN FICKE, ICE SPECIAL AGENT: Here you have, clearly, over 1,300 very good counterfeit badges representing over 35 law enforcement agencies, federal, state, and local, and for someone to have that in their possession and to be able to utilize that to identify themselves as a law enforcement officer could be devastating when it comes to a situation like homeland security, of course, where we're trying to control access to various things and the authority of various people to have access to those particular locations.

(END VIDEO CLIP)

FEYERICK (voice-over): Now, the badges were shipped from Taiwan to San Francisco. A customs agent opened the package, and she then alerted federal officials in New York. Now, marshals raided the Bronx home of Sergio Khorosh (ph). He is Russian-born, but he's been living in the United States as a permanent resident. Officials say that he's been arrested more than a dozen times in the last 15 years, mostly on weapons-possession charges.

(on camera): Right now, federal agents scrambling to find out exactly who he may have sold those badges to and who would be interested in buying them. Khorosh's lawyer calls the badges collectibles. Wolf?

BLITZER: Deb, what about the quality of those badges? On television, the video you've been showing us, they look pretty authentic. They look pretty good, but what about up close? What do authorities say -- could they pass muster and actually get someone through security lines?

FEYERICK: There's absolutely no question that they could pass muster. And as a matter of fact, among the counterfeit goods, were actual leather cases with the imprint of the agencies stamped on them, and the head of I.C.E. here in New York said that nine times out of ten those badges would likely pass scrutiny.

I even had him hold up his own badge, and it was remarkable just how close they looked. You'd have to know the agency in order to distinguish it, and if you're holding that thing and flashing it up past some sort of a guard, chances are you're going to get in wherever you need to go.

BLITZER: That's pretty scary -- pretty scary stuff. Deborah Feyerick reporting for us from New York. Thank you, Deborah, very much.

And as we continue our "Security Watch," both the U.S. and British Navy's are looking into an American aircraft carrier and an intruder who managed to get on board before he was detected. Our Pentagon correspondent, Barbara Starr, has details.

(BEGIN VIDEOTAPE) BARBARA STARR, CNN PENTAGON CORRESPONDENT: U.S. and British military and law enforcement personnel are investigating a security breach last month that resulted in an intruder boarding the USS Harry Truman, a Navy aircraft carrier, as it was anchored off Portsmouth, England.

Now, although the man was determined not to be a terrorist, the U.S. Naval Criminal Investigative Service and Royal Navy Security personnel are investigating the incident, trying to determine how it all happened. The Truman was anchored slightly offshore when the incident took place. The man apparently breached British security at the Portsmouth naval docks, then boarded a small ferry boat that was taking crew members out to the ship, and then got on board the Truman. He was on board for up to half an hour, officials say, before security personnel on the ship determined there was an intruder.

This is considered a serious breach of security because ever since the bombing of the USS Cole almost five years ago in Yemen, in which several U.S. Navy sailors were killed, the security around U.S. Navy warships, when they are in port, is supposed to be very tight. So U.S. and British officials trying to determine, even though the man was not a terrorist, how this security breach happened.

Barbara Starr, CNN, the Pentagon.

(END VIDEO CLIP)

BLITZER: Thanks very much, Barbara, and please stay tuned to CNN day and night for the most reliable news about your security.

When we come back, it's not only the military. Government computers also hacked, allegedly by a teenager. Our "Security Watch" continues.

Also ahead -- we're expecting an announcement regarding the murders of those two young girls. That announcement coming up this hour. We'll bring you the news conference as soon as it starts.

And later, the last good-bye. After three decades, troops who made the ultimate sacrifice for their country are laid to rest. We'll go live to Arlington National Cemetery.

(COMMERCIAL BREAK)

BLITZER: Welcome back. A dramatic case spotlighting the vulnerability of key computer systems to hackers. The FBI confirms to CNN a story in "The New York Times" about a major breach of a computer company, and it appears that attack was just part of a much larger operation.

CNN technology correspondent Daniel Sieberg has the latest.

(BEGIN VIDEOTAPE)

DANIEL SIEBERG, CNN TECHNOLOGY CORRESPONDENT: The details in this case are still coming out in bits and bites, but it's certainly setting off a lot of alarm bells in the cyber-security community. Here's the story: basically, about a year ago, what they believe to be a 16-year-old hacker was able to break into some computer systems at a company called Cisco. Cisco is responsible for a lot of the routers and programs that control the way computers run on the Internet.

Now, this "New York Times" article that came out today also is reporting that this 16-year-old had been arrested in Sweden, and that they are looking to see whether he has any other accomplices who may have been part of a much wider investigation. And that's what we're learning today. So, this case expands beyond just this Cisco theft of code, and to perhaps beyond into military system computers, NASA, various research and government agencies. That a lot of the information may have been taken from a number of these companies by this 16-year-old hacker and perhaps others as well.

I did speak to someone at White Sands Missile Range, one of the organizations listed in the "New York Times" article. They said they did have a break-in, about a year ago, in April of 2004. But the data that was stolen was not considered classified or sensitive, it was some weather forecasting information. But it is really concerning to a lot of cybersecurity experts, who say this illustrates how a lot of government computers may be vulnerable, because they are connected to the Internet. And the ease with which apparently this 16-year-old was able to get some of this information.

Again, the details on this information are not known yet on just how wide this scope is. But it's concerning to them how he was able to do this, and that's something they're going to be looking into in the future. The FBI says they're working on a global effort here. That the activity at least for now has stopped because they have got this 16-year-old. But they're certainly going to be look into it more in the future. Back to you.

Daniel Sieberg, thanks very much. Our technology correspondent.

Earlier, as you remember, we reported on another story with huge security implications, the arrest of a New York City man, who allegedly had 1,000 phony law enforcement badges that he was wanting to sell. We also heard the report about that man who slipped aboard the U.S. Aircraft Carrier the Harry Truman without being detected. Let's get some analysis now on that.

Joining us our CNN security analyst Richard Falkenrath. Richard, thanks very much for joining us.

Let's go through one by one by one. A 16-year-old kid in Sweden hacks into some of the most sensitive computer systems that the U.S. government, the federal government has.

What's going on here?

RICHARD FALKENRATH, CNN SECURITY ANALYST: It's really not that uncommon. This sort of thing happens a great deal. Our security systems around our computers are not as good as we'd like them to be, even in the federal government. And because they are connected to the Internet, so that lots of people can access them to work, they're also vulnerable when someone can figure out a way to penetrate the cybersecurity. It's a very difficult area here, and the federal government frankly has had a tough time keeping up with the pace of technology and a reliance on computer infrastructure.

BLITZER: What do you do? You go out and hire 16-year-old hackers and you put them on the government payroll to try to figure out how to stop this?

factional: We did do some of that. We have employed a few sort of former hackers, who come over and start helping the government both the Department of Homeland Security and the FBI, understand the nature of the threat so that we can figure out how to respond to it and investigate it.

BLITZER: You served on the National Security Council in the first Bush administration. As you know, our viewers listening to this, I'm listening to this, I'm hearing about some kid in Sweden, probably in his bedroom in pajamas, hacking in to some of these major government labs and security systems. And I'm saying this does not instill a whole lot of sense of confidence in the way our government operates in the world of these computers.

FALKENRATH: Well, you're right. It doesn't. There's a lot of different computer systems out there. Not all of them are tightly secured. The most tightly secured computer systems in the government are not on the Internet. They're completely separate system. There's a fireball between them and the Internet, so they're hard to get into. That also makes them not very useful. Not very many people can access them.

BLITZER: The other story that's pretty shocking, these thousands of badges, they look so authentic, they feel authentic. That some guy got manufactured and is ready to sell, or we don't know what the -- what the purpose of it is, but by all accounts they really are worrisome, that in the hands of bad guys they could penetrate all sorts of security lines.

FALKENRATH: Yes, this one's a doozy. I mean, these are incredible. This number of badges, this quality of badges in the hands of a Russian smuggler is quite extraordinary. And it's good that the -- our police got their hands on these things, but we've got to assume that there are more out there. They appear to be manufactured abroad, which I was worried about. The shipment seems to have come from Taiwan. And that tells me that somewhere outside the United States is a factory making badges like this that are able to mimic our own law enforcement badges.

BLITZER: So, in other words they get one real one, whether from NYPD or someplace else or an FBI badge or a DEA badge, they get one and then they can copy it and make thousands.

FALKENRATH: That's right. And sell them and make money. Now, probably, there's this organized crime trying to make money and engage in theft and...

BLITZER: But terrorists can buy these as well.

FALKENRATH: Absolutely, they could.

BLITZER: This is a nightmare scenario potentially.

FALKENRATH: It is. And what it shows you is the importance of identification documents, credentials, and badges in the modern age. This is why so much attention is going on identification systems right now, with biometrics, the Real I.D. Act, this problem with badges. We rely very intensively on systems of identification for our security, and when those systems are breached everything can fail.

BLITZER: Now, what do you make of this other story that some guy in England gets on board the USS HARRY TRUMAN, this huge aircraft carrier, with enormous security all around it. And he manages to get on this aircraft carrier. They find him. But who knows what kind of damage he could have done if in fact he wanted to do damage?

FALKENRATH: That's right. This should never happen. I mean, these are the crown jewels of the U.S. Navy. And there's no way that a foreign person like this should be able to penetrate that security. I hope someone loses their job for this in the Pentagon.

BLITZER: Because it sends a horrible signal out there that, you know what, if the Harry Truman, the USS Harry Truman, this huge aircraft carrier, there's only about a dozen of those, that the U.S. Navy has, is potentially vulnerable, who knows what else is vulnerable?

FALKENRATH: That's right. This is completely unacceptable. Now, this seems to be a kind of sport in Britain. People break into things that they're not supposed to, like Buckingham Palace, people break into it just to see that they can do it. But still the U.S. Navy should not allow this. Clearly, there was multiple failures in the security system around that ship, and I'm sure it's being tightly investigated over at the Pentagon right now.

BLITZER: And I'm sure if you were still in the NSC you'd be investigating it as well.

Richard Falkenrath, as usual, thanks very much.

FALKENRATH: Thanks, Wolf.

BLITZER: When we come back, murder and mourning in Zion -- Zion, Illinois. And now there's word of a potential arrest. We're standing by in the next few minutes for a live police news conference with all the latest developments in the murder of those two little second-grade girls.

Plus, we'll take you out to Riverside County in California, where deputies made a shocking discovery after responding to a 911 call.

Also, there are new developments to that story we brought you yesterday. The mayor of Spokane, Washington speaking out now about allegations leveled against him by a local newspaper. We'll tell you what's going on.

(COMMERCIAL BREAK)

ANNOUNCER: From our Studios in Washington, once again, Wolf Blitzer.

BLITZER: Welcome back.

There are new developments in the case of those two little girls who were stabbed to death in a park in Illinois. We're expecting a news conference, momentarily, to begin. We'll go there live, to Zion, Illinois, the moment it begins.

First, though, let's get a quick check of some other stories now in the news.

Prosecutors in Atlanta say they'll seek the death penalty against accused courthouse shooter Brian Nichols. He was in court for proceedings today with his legs in shackles. Nichols is accused of the March killings of a judge, a court reporter, and two others.

The so-called runaway bride, Jennifer Wilbanks, has signed herself into an inpatient treatment program to deal with what a statement calls "physical and mental issues." Wilbanks made headlines when she disappeared from her suburban Atlanta home only days before her wedding, prompting a massive search.

Off the triple-crown trail: the horse, Bellamy Road, the seventh place finisher at this weekend's Kentucky Derby. The 3-year-old horse ,owned by Yankee's boss George Steinbrenner, has what his trainer described as a minor injury in his left front leg. Bellamy Road was under consideration for the Preakness.

Now, let's take a quick look at some other news making headlines around the world.

(BEGIN VIDEO CLIP)

(voice-over): Hundreds of pro-independence demonstrators clashed with riot police in Indonesia's far eastern province of Papua...

(END VIDEO CLIP)

(on camera): We want to interrupt that report to go out to Zion, Illinois. This news conference with local law enforcement authorities just beginning. Let's listen in, see what they have to say. We expect to hear from police chief Doug Malcolm.

MICHAEL WALLER, LAKE COUNTY STATE'S ATTORNEY: Before I get started, let me make a couple of points. It's our goal to give you as much information as we can. However, we're not going to be able to answer all your questions.

We're announcing today that charges are being filed in the horrific murder of the two young girls in Zion on Mother's Day. But as most of you, or at least those of you who are from Illinois know, there are certain rules about what states attorneys can talk about at a news conference. And ordinarily I would be able to talk in more detail about the facts of this case, but we have not had a bond hearing yet for this defendant. And I will advise you as to when the bond hearing is going to be held, and after the bond hearing, which will be held tomorrow, we'll be able to talk in more detail about the evidence.

Today we are filing two counts of first degree murder against Jerry Branton Hobbs III of Zion. He's charged in the murders of Laura Hobbs, his daughter, age nine and Krystal Tobias -- excuse me -- Laura's age eight. Krystal Tobias, age nine, who was Laura's best friend. He's charged with the stabbing and beating death of both girls, which occurred on Mother's Day.

I'd like to commend the Zion police department, Chief Doug Malcom, the major crimes task force, Commander William Valco (ph) for the professional and thorough investigation they've conducted since the bodies of the girls were discovered yesterday morning. They've literally worked without sleep.

This horrific crime has terrorized and traumatized the Zion community and, I think it's safe to say, people of good will everywhere. The arrest today is the first step in bringing this defendant to justice. As you may be aware, this defendant is eligible for the death penalty. I've been the state's attorney for 15 years in Lake County, and I have a protocol that I follow. I've found that it's not a good practice to make such a decision in the heat of the moment, and we will make that decision after the investigation of this case is completed and after we do a thorough background investigation of this defendant. And it's important for me to make the point that this investigation is continuing.

The reason we're holding this press conference today is obviously because of the great interest and the need to keep the public informed, but also to try to bring some sense of relief to the people of Zion that this defendant is in custody. There will be a bond hearing tomorrow morning at 10:00 a.m. in the Lake County courthouse in courtroom 120. At that point, we will present evidence to the judge that will detail the evidence against this defendant to date. And as I said, tomorrow we'll be available to discuss evidence with you.

I'm going to introduce the mayor and the coroner in a second, and then we will answer the questions to the extent that we can. Let me turn this over to the mayor of Zion.

MAYOR LANE HARRISON, ZION, ILLINOIS: Thank you. I would like to take this opportunity to thank several agencies and people who have worked so diligently in bringing this person in: the state's attorney's office, the Zion police department, the Lake County major crimes task force -- who diligently gathered evidence -- the Lake County coroner's office, the Zion E.S.D.A. -- which is a volunteer group of individuals that were out there all night with dogs gathering evidence for the crimes task force -- the Zion elementary district 6 schools -- who took the crisis counseling of children to heart today. I, in fact, am a schoolteacher in that school district, and I know how effectively these children were dealt with today and yesterday as they tried to grieve and get through this process. And there's a lot more to go there yet. And I would like to thank all the departments of the city of Zion.

But most of all, I'd like to thank the citizens of the city of Zion for not taking this to a level that could have been something that would have been -- something that would have exacerbated this situation and made it worse than it is. It's horrible. People had questions. People still have questions. We will all have questions until the day we die. But I'm just thankful to God that we were able to get through this in just a couple of days, and now the really tough work begins for Mr. Waller and his crew. And we just want to thank them for their diligence, and we know that this will have a good ending for the citizens and the people and the children of Zion. And I would like to introduce the coroner, Dr. Keller.

DR. RICHARD KELLER, LAKE COUNTY CORONER: Dr. Richard Keller, Lake County coroner.

Basically, what I will do is just reiterate the statements that I and my office has made before, that these young girls died of multiple stab wounds. I know that many of you have sought more detail, but, again, as Mr. Waller had stated, the investigation is still ongoing, and we will not be giving out much more detail than that, particularly until after the bond hearing and as that investigation progresses. Thank you.

QUESTION: Mr. Waller, can you give us any idea as to a motive? First of all, did he confess, and second of all, can you give us any motive at all? Trying to get back his wife or anything...

WALLER: I can't answer the first question. I think you'll get the answer to that question tomorrow morning after the bond hearing. And you know, I've been in this business for over 30 years. This is probably the most horrific crime I've ever seen, and I've had many other news conferences, have made the statement that there's no rational explanation or reasonable motive that can be ascribed to an act of horror like this.

QUESTION: What kind of criminal background does he...

WALLER: Well, he does have a criminal background, and again, that's something that we'll be able to talk about more tomorrow.

(CROSSTALK)

QUESTION: Were the two girls lured to the area? Were they surprised there? Were they killed where their bodies were found? Help us and help parents in the area understand...

WALLER: Well, they weren't lured to the area. This isn't a crime committed by a stranger. This is a crime committed by the father of one girl, and he obviously knew the other girl. The murder occurred in the general vicinity of where the bodies were found.

QUESTION: Was he riding a bicycle with them? Did he lead them into the woods?

QUESTION: No. He encountered them in the woods, and that's where the incident took place.

QUESTION: What was the scenario? Can you tell us about the scenario of how this did come about?

WALLER: Well, just, generally, I can tell you that the girls -- and I think you've probably reported on a lot of it. They were -- you know, it was a beautiful day on Sunday. It was Mother's Day, and they were riding their bikes, visiting friends, and at one point they ended up in the park, and they were encountered by the defendant, and that's where the murders occurred.

QUESTION: Sir, was this premeditated on his part, or was it just the chance of the moment, something that happened that triggered it?

WALLER: You know, I don't think we can get into that.

QUESTION: Do you know why he was in the woods?

WALLER: He was looking for his daughter.

QUESTION: Mayor Harrison, the fact that this was not, according to the allegation, a random act, that it is clearly rooted in some domestic strife -- that has to make a big difference to your community.

HARRISON: I would think it would make a tremendous difference to the community, knowing that there isn't a randomized kind of situation where someone laid in wait, if you will. More importantly, the person who committed the crime's in custody, and that should bring a great deal of comfort to our community.

QUESTION: Has he been in custody the entire time since he found the girls?

WALLER: No.

QUESTION: Was he considered a suspect right off the bat?

WALLER: No.

QUESTION: Mr. Waller, were the girls camping out? I know they didn't come home for dinner. They were looking for them. (INAUDIBLE) went into the woods looking for them. Was he trying to...

WALLER: No, they weren't camping out at -- no.

QUESTION: When did you begin questioning him?

WALLER: Sometime yesterday.

QUESTION: What time yesterday?

WALLER: I don't have that. QUESTION: Do you have a better idea of what time the murders took place now?

WALLER: Well, we believe they took place sometime early evening hours of -- early evening hours.

QUESTION: Not the middle of the night, as had previously been speculated?

WALLER: Right. I'm not really that concerned about speculation.

QUESTION: Has a weapon been recovered?

WALLER: No.

QUESTION: Mr. Waller, you said he went into the woods looking for them -- For His daughter. Was this after she had been reported missing?

WALLER: No.

QUESTION: Did he come to the police?

WALLER: She was reported missing after his actions.

QUESTION: Did he come to the police saying "I have found them"? Is that essentially what happened?

WALLER: Well, no. They -- well, yes. They called -- he was with another individual, and after they found the bodies -- after the bodies were found, a call was placed to the Zion Police Department.

QUESTION: Can you describe his reaction to finding the body of his daughter and how that might or might not have been what officers expected?

WALLER: Well, I'm not -- I don't believe I'm really familiar with how he reacted, but I think it's safe to say that his reactions to questions piqued the officers officers' interest in questioning him further.

QUESTION: Immediately? Immediately?

WALLER: Well, over a course of time. You know, it's standard procedure in a homicide investigation is of course to talk to the family members. And obviously, in this case he wasn't the only family member we talked, to and we're still talking to family members to try to get as much information as possible. But his reactions and his answers were such that they interested the police in asking further questions that -- he -- other people -- other family members that were questioned didn't pique the officers' interest like his answers did.

QUESTION: You said that they were...

QUESTION: Can you tell us when?

WALLER: No, I don't think I can get into it any more than that.

QUESTION: You said that they weren't camping...

WALLER: Just a second.

QUESTION: You said that they weren't camping, but they were -- he went in to find the.

WALLER: Well, they were just -- they were in the course of their activities on Sunday. You know, as -- they were riding their bike. There was one bike. They were riding it together. They were visiting friends. They went into the park. There's a series of bike trails in the park, and they were -- that's where they were.

Somebody back there had a question?

QUESTION: Why did the investigators go back out to the Hobbs' house this afternoon. It look like they pulled out four bags of potential evidence?

WALLER: Well, it's -- again, that's pretty standard. You go in the first time, you develop more information, and then you go back and look for other evidence as you develop information.

QUESTION: Was Mr. Hobbs with him at that time?

WALLER: I'm sorry. Let me ask...

QUESTION: The father-in-law -- the father-in-law, or one of the girls' grandparents seemed to suggest that he was with Jerry most of the day and accounts for most of his time. Have you talked to the grandfather?

WALLER: Certainly.

QUESTION: And does...

WALLER: Well, we believe that we have a compelling case against this defendant, and all of that will come out in due course.

QUESTION: Can you tell us if Mr. Hobbs was with any of the investigators who returned to the scene of the crime?

WALLER: At what point? Yes, he returned this morning with investigators, early morning.

QUESTION: Has he been cooperative somewhat?

WALLER: Somewhat.

QUESTION: So he returned to the scene of the crime with the investigators to point out certain...

WALLER: Yes, he did.

QUESTION: Was he mad that the girls didn't come home from dinner or was this premeditated and he knew he wanted to do something on Mother's Day or -- anything at all?

WALLER: None of that -- and I don't think I can get into it anymore. There isn't any rational explanation for what happened. There wasn't -- this occurred before they were were -- before his daughter was supposed to return home. As I said before, you know, if you look at his actions and what he caused, you know, you can probably -- we can engage in speculation as to what his thought process was before. We don't know exactly what it was. But it certainly -- I think it's safe to say that he wasn't probably celebrating Mother's Day the way the rest of us were.

QUESTION: Was there at any point, when your investigators became convinced that this was in fact the suspect? Or was there any concern that you weren't able to tell this community soon enough that there was someone in custody, that there wasn't a killer at large?

WALLER: Well, the only thing I can tell you is that I'm informing this community at the earliest point that I could, which is right now.

QUESTION: He did...

QUESTION: (OFF-MIKE)

WALLER: I don't know.

QUESTION: So she could have been just a victim of poor circumstances, Krystal?

WALLER: She could have been. And I think it's safe to say that both these girls are. I'm sorry, Jay.

QUESTION: ... some kind of dispute between the girl's mother and your suspect play any role in this?

WALLER: Well, I think that'll perhaps will come out tomorrow. I don't want to get into that today.

QUESTION: Was Mr. Hobbs taken into custody or did he...

WALLER: No, he volunteered came. He came down with the other family members for questioning.

QUESTION: When was that?

WALLER: Yesterday.

QUESTION: With his cooperating -- with the fact that he's so cooperative, and I know you said it's early, but would that play any role in whether you decide not seek the death penalty in this case?

WALLER: No. What I -- What I do is when this investigation is completed, we'll thoroughly analyze this case, do a complete investigation of his background, ask his defense attorney to bring any information to me that might bear upon that decision ultimately, and then make a decision. QUESTION: Mr. Waller has he admitted to this?

WALLER: You know, I think you're going to have to wait until tomorrow at the bond hearing. Unfortunately, the Illinois Supreme Court says that I can't answer your question. It's not me. It's the Illinois Supreme Court.

QUESTION: The girls didn't stumble upon James in the forest, he came upon them. But they didn't catch him do...

WALLER: Right. It is our understanding that the evidence is that he went looking for them.

QUESTION: Are you convinced he acted alone?

WALLER: Yes.

QUESTION: Where is he right now?

WALLER: He's in custody. He's in the Zion Police department.

QUESTION: And there was only one bike, is that right -- one bike?

WALLER: Yes. The girls were riding one bike.

QUESTION: Do you know if he's going to be transferred tonight?

WALLER: I don't know when he is. I know that the bond hearing will be tomorrow morning. So he'll be -- it will probably be tomorrow morning.

QUESTION: So he would spend the night at the Zion Police Department?

WALLER: You know what, Jackie (ph), I don't make that decision. So you probably should -- maybe after this is over you can ask the Zion Police or the Major Crimes Task force and they would tell you. Yes, ma'am.

QUESTION: What's been the reaction from the family?

WALLER: You know, I don't know. I know that members of the Major Crime Task Force have talked to them and are continuing to talk to them about other details. So, I don't know.

QUESTION: Dr. Keller, it was mentioned that with the beating and stabbing, I asked you today if there's any more trauma. Can you elaborate a little bit more now that it's come to light that there was a beating as well?

DR. RICHARD KELLER, LAKE CO., ILLINOIS, CORONER: Again, a lot of the findings at autopsy and during our exam are a part of the ongoing investigation. Yes, there was bruising from -- you know, from blunt trauma of some sort. But as to any more details than that I really can't give them. WALLER: And I forgot to mention we also have a photo of the defendant.

QUESTION: Did you say the birth date (INAUDIBLE).

WALLER: Did we distribute the news release? Oh, OK. We have a news release, and it's in the news release. Any other questions?

QUESTION: Are you going to be having a news conference after this one?

WALLER: We'll be available tomorrow to answer questions.

QUESTION: It's going to be Wakegen (ph)?

WALLER: It's going to be in Wakegan in courtroom 120. There's a news release here with all the information in it, including his date of birth and address, which I think I forgot to mention, and there's a photograph of him.

BLITZER: And so there you have it, Michael Waller, he's the Lake County, Illinois state's attorney making the formal announcement. Two counts first degree murder filed against 34-year-old Jerry Hobbs. He's the father, the father of one of those two little girls, Laura Hobbs, 8-years-old. And Krystal Tobias, her best friend, 9-years-old, whose bodies were found only yesterday.

No rational explanation for this murder, according to the state's attorney, Michael Waller.

Chris Lawrence is our correspondent, who's been on the scene from the beginning. A horrendous case. The state's attorney, you heard say he would be eligible for the death sentence in the state of Illinois if they decide to pursue that specific -- that specific course of action.

But the father, as you've been reporting all day, has been a so- called person of interest by local law enforcement ever since this case basically erupted. I assume, Chris, because of his criminal record. Is that what's going on?

LAWRENCE: That's right, Wolf. They wouldn't exactly touch on much detail in his criminal record, but independently through the Wichita County clerk's office and the D.A. in Texas, we have amassed sort of a file on Jerry Hobbs. He has an extensive criminal record that goes back to about 1990 and just continues through the years. Nearly a dozen convictions over the last 15 years. Anything from driving with a suspended license and possession of marijuana up to aggravated assault. It was that most recent charge in around 2002, he was convicted of aggravated assault, that landed him in jail in 2003. And he was just released about four weeks ago, and then moved up here to Illinois, where his daughter Laura lived.

BLITZER: Chris Lawrence reporting for us. We'll check back with you, Chris. A horrendous, horrendous case. Our hearts go out to those families. Once again, Jerry Hobbs, 34 years old, the father of one of those two little girls, now charged with two counts of first-degree murder. 10:00 a.m. local time, 11:00 a.m. Eastern time tomorrow morning, bond hearing will be set out in Illinois. We'll have more on this story as it becomes available.

When we come back, another horrific scene discovered after police respond to a mysterious 911 call. The bodies of three adults and three children found at a ranch southeast of Los Angeles. We'll go live to the scene with the latest developments.

Also, a final farewell. The families of four Americans killed in action in Vietnam are finally getting some closure.

(COMMERCIAL BREAK)

BLITZER: Deputies responding to a 911 call in Southern California made a truly shocking discovery. Let's go live to CNN's Ted Rowlands. He's joining us from Riverside County. That's southeast of L.A.

What was that discovery, Ted?

TED ROWLANDS, CNN CORRESPONDENT: Well, Wolf, when investigators arrived here, they found the bodies of three adults and three children, and they're still going over the crime scene at this point.

Here's what we know. At about 4:30 this morning, a 911 call came from inside the house. No one was on the other line of the 911 call, but the operator heard disturbing noises. They sent crews out. That's when they made the grisly discovery.

The sheriff here in Riverside County has confirmed that the house is owned by David McGowan. He's one of their own, a district attorney's office investigator in this area.

Neighbors say McGowan lived here with his wife, Karen, and three young children, two girls and a boy. Homicide investigators are on scene. They're calling it a homicide at this point, but a spokesperson said they have not ruled out murder-suicide. They said there's no sign of forced entry, no one is in custody, and they say they're not looking for anyone at this point, but the investigation continues, and we expect a news conference at the top of the hour to answer some of these questions -- Wolf.

BLITZER: We'll be watching that with you, Ted. Thanks very much.

When we come back, a long journey home after 38 years. The remains of troops killed in Vietnam are buried at Arlington National Cemetery.

(COMMERCIAL BREAK)

BLITZER: In this 30th anniversary year of the end of the Vietnam War, a very painful final farewell for four American servicemen killed in action in a jungle battle. Brian Todd is over at nearby Arlington National Cemetery. He's joining us live with the story -- Brian.

BRIAN TODD, CNN CORRESPONDENT (voice-over): Wolf, today we saw one of those lasting images from a distant war, a ceremony where family members welcomed their loved ones home and bid them farewell at the same time.

(BEGIN VIDEOTAPE)

TODD (voice-over): Irene Healea always knew what happened to her brother, but had no finality. On this idyllic morning at Arlington National Cemetery, she got it.

IRENE HEALEA, HEINZ AHLMEYER'S SISTER: My brother was a great guy. He was a hero.

TODD: Healea and members of three other families waited 38 years to the day for this moment, 38 years since her brother, U.S. Marine Lieutenant Heinz Ahlmeyer Jr., landed on one of those untakable hills in Vietnam.

May 10th, 1967. Lieutenant Ahlmeyer and six others move on to a ridge line near the Laotian border. Recon Team Breaker, as they're called, is ordered to gather intelligence on enemy infiltration routes. Ahlmeyer has only been in country for about two weeks, and is on his first combat mission.

One member of his team knows how dangerous this will be. In a letter home written the night before, Sergeant James Neil Tycz tells his parents, "Our lieutenant passed me the word that we go in at 7:30 a.m. tomorrow. None of us want to go, but that's our job, and I pray I will never fail to do it."

The next day, on that hill, published reports say a force of at least 30 North Vietnamese troops practically stumbles over the seven Americans. The Marines fight nobly, but can't withstand the onslaught.

BRITT FRIERY, MEMBER OF "RT BREAKER": Before we could take them out, they had fired an automatic burst that wounded Lieutenant Ahlmeyer very severely, wounded Sergeant Tycz as well.

TODD: Ahlmeyer, Tycz, Navy Corpsman Malcolm Miller and Marine Lance Corporal Samuel Sharp Jr. are killed almost immediately. At least one helicopter that moves in to evacuate them is shot down. The hill is napalmed. A survivor on the ground frantically radios for help.

RON ZACZEK, MEMBER OF RESCUE TEAM: And he kept saying, you know, OK, you've got to get us out, we're burning up, we're burning up. You've got to come in, you've got to get us out.

TODD: The remaining Marines are rescued, but the hill is so dangerous, the military says that the bodies of the dead must be left there.

HEALEA: I really didn't think, you know, after all these years, that they were going to -- that they would find my brother, but I'm very, very grateful.

TODD: Earlier this year, Healea and relatives of the three others get word: Diplomacy has paid off. Excavation teams were finally allowed on that hill. Remains of teeth and other markings have been identified. Her brother is coming home.

Heinz Ahlmeyer Jr., James Neil Tycz and Malcolm Miller now rest at Arlington. Samuel Sharp Jr., honored in this ceremony, is buried back home in California.

Another man on that hill remains haunted.

FRIERY: I didn't think I would get out of there. When we were in there, we thought we wouldn't get out of there.

(END VIDEOTAPE)

TODD: And so many remains throughout Vietnam. According to the Department of Defense, more than 1,800 Americans are still listed as missing from the Vietnam War -- Wolf.

BLITZER: Brian Todd, thanks very much.

That's all the time we have. "LOU DOBBS TONIGHT" starting right now. Lou is in New York. He's joining us -- Lou.

LOU DOBBS, HOST, "LOU DOBBS TONIGHT": Wolf, thank you very much. Have a great evening.

END

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