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U.N. Peacekeepers Detained; Reports Russia Invading Ukraine; Russia May Be Linked to JPMorgan Hack; Syria Says Killed Second American Fighting With Jihadis; Fears of New Imminent ISIS Massacre; New Details on Missing MH-370

Aired August 28, 2014 - 11:00   ET

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

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ANNOUNCER: This is CNN breaking news.

JOHN BERMAN, CNN CO-ANCHOR: Hello, everyone. I'm John Berman.

MICHAEL PEREIRA, CNN CO-ANCHOR: And I'm Michaela Pereira.

BERMAN: We do have breaking news from the Middle East right now. Forty-three United Nations peacekeepers were detained this morning in the Golan Heights.

An Israeli military official with knowledge of the situation tells CNN the peacekeepers were taken by the al-Nusra Front. This is the Syrian rebel group with links to al Qaeda. We're going to have more as information becomes available.

U.N. peacekeepers have been monitoring that area in Golan for almost 40 years now, since the war in 1973, but now obviously caught in the middle of the larger conflict raging right now in Syria.

Also happening at this hour, major escalation in the crisis between Russia and Ukraine. U.S. official telling CNN as many as 1,000 Russian troops with tanks, armored personnel carriers, and heavy weapons are now fighting inside Ukraine, including in a strategic town along the country's southern coast.

PEREIRA: One Ukrainian military official is warning this is a full- scale Russian invasion.

Our Diana Magnay joins us from Ukraine. Barbara Starr is with us from the Pentagon.

Diana, I'll start with you. A thousand troops amassing, that sounds like an invasion on our end. What are you learning there?

DIANA MAGNAY, CNN CORRESPONDENT: Well, it's difficult to see this invasion as such. We've been driving down this road directly towards the Russian border behind me, and this checkpoint that you can make out in the distance really is the last Ukrainian presence. The land beyond that, and we drove some 20 kilometers, is really there for the taking. We know that the town of (inaudible), which is about 30k in that direction, has been taken by a mixture of pro-Russian rebels and Russian forces. The Ukrainian national security council tells us that they have pushed these Ukrainian units out of the town.

Down there, we spoke to the (inaudible) battalion who had been pushed out by those tanks, back toward Mariupol.

Now, there's been a lot of talk that the Russians are trying to push west towards this major coastal town of Mariupol. We've seen no evidence at all of that, and there is a major Ukrainian road block.

If you think about it, a thousand troops, which NATO says are now on this side of the border, along a huge stretch of the border, about 450 kilometers up toward the main area of the rebel held territory, a thousand troops isn't very much and it's certainly difficult for us to see them.

But a major escalation if you consider that now towns on this side of the border are being taken by Russian forces.

BERMAN: All right. Diana Magnay, who is in Ukraine, thanks so much.

I want to bring in Barbara Starr right now at the Pentagon. You are hearing now from U.S. officials about what they are hearing and seeing, what the intelligence is telling them.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: That's right. Good morning John and Michaela.

U.S. intelligence began to gather information and assesses that now overnight about 1,000 troops have moved into this southern area, and there may be now a total of upwards of 2,000 Russian forces inside Ukraine.

What officials are telling us are these are regular Russian forces. No separatists, no rebels, this is, you know, this is the real deal, Russian troops with Russian weapons.

A short time ago, NATO released a number of satellite images that it has collected over the last many days showing Russian forces on the move. I want to show everybody just one of them. This shows a Russian artillery convoy moving across into eastern Ukraine.

The reason NATO says they know these are Russian forces, not Ukraine forces, this is an area where Ukraine forces have no control, where they are not located. Only Russian troops are there. You see at the top of your screen, those black dots, that essentially a convoy of Russian artillery.

The U.S. ambassador to Ukraine just a few hours ago, tweeted this. And I want to read it to everybody. This is what the U.S. thinks the current state of play is, the ambassador saying, "Russia supplied tank, armored vehicles, artillery, and multiple rocket launchers, they have been insufficient to defeat Ukraine's armed forces, so now an increasing number of Russian troops are intervening directly in the fighting on Ukrainian territory."

We are also told the Russians have moved in very long-range anti-air equipment, anti-air weapons. That is their move to try to keep the Ukrainian air force from taking to the skies to fight them that way.

John?

PEREIRA: Barbara, the Pentagon obviously keeping a keen eye on this, is it likely that they're going to take any action?

STARR: Well, that is a question. You know, this couldn't come, perhaps, at a more awkward time for President Obama. He actually travels next week to the NATO summit in Wales. Russia and Ukraine were already going to be topic number one.

Not -- don't expect to see a lot of new U.S. military moves. There's support for the Ukrainian military, nonlethal support, some equipment, some deliveries of things like tents and uniforms.

There's a lot of movement of U.S. troops in Europe to conduct more exercises and training with east European allies. There are the sanctions against Russia. But right now, this is very tough to see a way ahead.

Here in the Pentagon hallways you hear the word invasion. You hear the word incursion. But the White House still yet to weigh if on this very publicly today.

Michaela, John?

PEREIRA: All right, Barbara Starr, currently very concerning, our Diana Magnay as well, thank you much for that.

Russia might also be tied to a hacking attack.

BERMAN: Yeah, as if that's not enough.

PEREIRA: As if it's not enough.

On JPMorgan Chase, another powerful U.S. financial institution, banks, here in the U.S., the FBI not only considers this a major breach but also a national security matter. The agency is now working with the U.S. Secret Service on the investigation.

BERMAN: We're joined now by Christine Romans, CNN's chief business correspondent, also anchor of "EARLY START."

You've been doing some digging on this, Christine. A lot going on?

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: So, yeah, a lot going on here. Now, the FBI very clear that they don't know where this attack emanated from. They have not said specifically this is from Russia, but they are concerned and they are investigating.

Looks like it was JPMorgan and several other banks as well. And this is -- they got in there and got, you know, a lot of data. They got information in there.

Now JPMorgan, telling us, in a statement, "Companies of our size unfortunately experience cyber attacks nearly every day. We have multiple layers of defense to counteract any threats and constantly monitor fraud levels."

They say so far they have not seen any unusual fraud activity at this time. JPMorgan hasn't. But this is a sophisticated hack, and it comes at a time, obviously, with political reasons, with sanctions, these banks are the -- people have to carry out the sanctions in some cases against Russia. So it's that timing that has cyber security experts looking very closely at Russia.

PEREIRA: So that's what it is. It's not because they have any other evidence --

BERMAN: Russian fingerprints.

PEREIRA: Right. Exactly.

ROMANS: So far the cyber people are saying they don't see the fingerprints yet. That's what the investigation is for.

But here's the thing, Jim Lewis over at the Center for Strategic International Studies telling me that Russia does this better than anybody else, Russian-based hackers do this better than anybody else, especially against the banks. That is their primary target. And it's usually financially related.

But a lot of people looking at things, like, for example, oil and gas trading information, M&A activity information, things that Russian intelligence might be interested in, things that can go to the highest bidder on the black market.

BERMAN: But what about my bank account? Or our bank accounts?

ROMANS: Your bank account, so JPMorgan tells us they don't see unusual fraud activity at this time.

But it's a reminder of how you have to protect yourself. Make sure your passwords are up to date. Use that double authentication where you have like a key code and another memorized number to use.

PEREIRA: This sounds way more sophisticated, though.

ROMANS: It is. And that's the thing here. JPMorgan spends $250 million a year, has a thousand people trying to keep this safe, and security experts tell me the banks are the safest industry in America.

They're not like the retailers and they're not like some of the hospitals and retailers. They're the worst. The banks are the strongest. They're spending a lot of money because it is a national security issue.

BERMAN: All right, Christine Romans, thanks so much.

ROMANS: You're welcome.

BERMAN: Appreciate it.

PEREIRA: To get into the conversation, I'm sure that you're probably talking about this around your office or home, let us know how you're protecting yourself. You can get in on the conversation on Facebook.

BERMAN: All right. Ahead for us @THIS HOUR, the U.S. launches new air strikes against ISIS as residents of one Iraqi town find themselves surrounded by militants.

PEREIRA: And in Syria rebels say Douglas McCain wasn't the only American they killed in recent fighting against ISIS. That claim, plus terrorists recruiting efforts in the American heartland.

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BERMAN: The list of Americans fighting and dying alongside Islamist militants in the Middle East is growing.

We're learning more about Douglas McCain, the 33-year-old man from Minnesota who was killed last weekend fighting for ISIS in Syria.

Now the same Syrian opposition groups claiming that they killed McCain in battle are also saying they killed a second American ISIS fighter, though, as of now they're not naming him. The State Department is investigating this.

There is also this 22-year-old from Florida who took part in a suicide bombing this year in northern Syria.

PEREIRA: Add to that more disturbing details emerging, the "New York Daily News" reporting a classmate of Douglas McCain at that suburban Minneapolis high school died in 2009 fighting for a terrorist group in Somalia.

Our Ted Rowlands joins us now from Minneapolis, and there's significance to why you are in Minneapolis as we know. We'll talk about that in a second. But, first, tell us more about what we are learning about this young man, this 33-year-old Douglas McCain.

TED ROWLANDS, CNN CORRESPONDENT: McCain and the other individual you just mentioned, Michaela, Kastigar, Troy Kastigar, who died in 2009 fighting in Somalia, they were actually high school friends.

hey played basketball together, went to the same high school in suburban Minneapolis here, and the "New York Daily News," which you just mentioned ,did interview the mother of Kastigar, Troy Kastigar, yesterday, and she talked about the relationship between McCain and her son and said that they both were sort of searching, it seemed like.

I think both of them had a really strong desire to be needed and be of value. It's fascinating that two young men who went to the same high school ended up dying the same way, and that is as a recruited fighter for an extremist group. They were different groups, ISIS of course who McCain was fighting for, and Kastigar was fighting for al Shabaab in Somalia in 2009, but obviously they knew each other, grew up together.

What we don't know is if they continued to speak through the years after high school and what that relationship was.

But as you mentioned this is an area that is heavily focused for recruiters for fighters.

BERMAN: It's a large Somali population there as well. What are people there now saying about this, Ted? Because I think it's alarming when you see a 33-year-old guy who grows up in a town like Minneapolis --

PEREIRA: An American kid.

BERMAN: -- killed in Syria fighting for a terrorist group?

ROWLANDS: Yes. And it's overwhelming to see that it's more of this happening. There are kids that are being heavily recruited. In fact, there is a video out there that is targeted just to the twin cities. It's a video that is asking, basically, for Minnesotans to be martyrs. It is called Minnesota Martyrs and they -- the video is part of this recruitment which really does frustrate people here. The FBI is absolutely involved in it. And it is a big concern here and across the country.

PEREIRA: All right, Ted Rowlands with the latest there from Minnesota, thank you so much for that.

Now to Iraq and fears of an imminent massacre by the hands of ISIS. This is how a U.N. official is describing the horror that thousands of Iraqis are facing right now. This as President Obama considers more air strikes.

BERMAN: So this time the crisis is emerging in a new town, a new focus, this town called Amerli populated by Turkmen Shiites, another religious and ethnic minority. ISIS fighters have laid siege to that town of about 17,000 people, knocking out power, cutting off food, water, and medical services. Iraqi security forces are working, they say, to free the residents. This as the United States is weighing a new round of humanitarian air drops like the ones we saw in Mount Sinjar.

PEREIRA: And that is the concern, there are more religious and ethnic minorities there, essentially waiting to see what happens to them.

Our Anna Coren is in Erbil. Back with us, CNN military analyst retired Army Lieutenant General Mark Hertling. Thank you for joining us both.

Anna, let's start with you. We know that U.S. war planes carried out three new air strikes near Erbil. Give us the latest of what you're seeing there, and hearing, and experiencing on the ground.

ANNA COREN, CNN CORRESPONDNET: Well, certainly up here in northern Iraq, those air strikes are continuing and making significant difference on the battlefield. It's forcing the ISIS militants to change their tactics, but certainly down in Amerli, that township that you are talking about, we've just got word there are Iraqi military reinforcements coming to the aid of those local police.

The volunteers within that township who have taken up arms to try to fight off those militants who, mind you, are at the gates of this township. They've cut off water, they have cut off power. We're hearing reports, from say the Turkmen foundation who has family, friends, within the area, that dozens of children have died as a result of starvation, of dehydration. I mean, the situation is dire.

So that call went out from a U.N. a few days ago, talking about a possible massacre. The Iraqi promised to designate also appealing for help for the U.S. air strikes, perhaps to be expanded, to cater for Amerli, but that has not happened as of yet.

BERMAN: That's interesting, considering a new round of humanitarian air strikes in Iraq, at the same time they're weighing their options in Syria.

Want to bring in General Mark Hertling here. General, the President will meet at the White House today with his national security team. He meets in the afternoon. There's been a fair amount of talking. Now supporters of the President say this shows he's trying to come up with a measured response and be patient to come up with the right answer. His critics will say, you know, it's too little too late and it is time for action. From a military standpoint how much time do you have? Because clearly ISIS knows the U.S. is considering air strikes now in Syria.

LT. GEN. MARK HERTLING (RET.), CNN MILITARY ANALYST: Well, it is an ongoing operation, John. That's a great question. I think Anna's report on Amerli, and the nearby towns of Tuz Khurmatu -- remember, the early mission that the President gave was to prevent humanitarian crises. There are several other groups like the Yazidis. We talked about them for a long time, now we have the Turkmen. There's also the Chaldeans, the Assyrians and many, many more.

Amerli is a hotbed of Turkmen population. I've been to that town before. It's unlike the Yazidi crisis because there's no mountain to climb up to get away from the ISIS fighters. So there is going to be a requirement to continue to support the Iraqi military, the Peshmerga as they try to relieve this humanitarian crisis in this relatively small town.

PEREIRA: And we've talked about it, but I think it bears repeating, we talk about the fact that there are these Jihadis from other countries joining the ISIS forces. I want you to tell me what you think the future looks like and how that complicates things if there were to be boots on the ground?

HERTLING: Well, from the standpoint of ISIS and recruiting, it is -- it's a sexy appeal to jihadists all over the world, come here to fight, they love doing that. But I think as this fight continues what you're going to see is a continued turn away from this radical extremist group.

Remember, a reminder that there's 11 million people in northern Iraq from Baghdad to the Syrian Turkish border. Eleven million people. Not all of them, in fact, a great majority, run counter to what ISIS is going to do. I personally think this group is going to wear themselves out. There's going to be action against them as the Iraqi government gets their act together and it seems like they're doing that now. The Peshmerga are getting new energy and they are continuing this fight. So I think you're going to see a lot of Jihadis going there and a lot of Jihadis eventually being killed.

PEREIRA: Why such confidence, General?

HERTLING: I'm sorry?

PEREIRA: Why such confident in that? It's interesting you say that, you think they're going to kind of run out of steam. What makes you believe that?

HERTLING: My confidence is based on my experience with the people in northern Iraq. These are good people. I mean they want freedom, they want peace, they want to get their kids to schools. They want to have their businesses thriving. And the ISIS attack is disrupting all that.

You're seeing probably a lot of Baathists coming in as well. The military approach. They're getting some of that from the former Baathists. It's a different organization. But I think the good people of northern Iraq are going to have a similar event like the awakening, like we saw in 2006, and 2007, and 2008, and they're going to begin to push these people back because they are so radical. It's going to take a long time. This is not going to happen fast.

BERMAN: Before that happens there is more chaos. Anna, I want to leave you with a note here because we are getting reports this morning that there are these battles raging in some of the oil fields near Mosul. Do you have an update on how that's going right now?

COREN: Yes, we spoke to officials, John, and they say that operation is still under way to try to push those ISIS militants out of this area. Remember, they took Mosul, Iraq's second largest city, back in June and much of the surrounding area, then early this month they took Mosul dam. Obviously the Peshmerga managed to retake control of it last week, but it's those surrounding villages and towns that still are under ISIS control.

The Peshmerga certainly moving through, pushing them out in their wake as they leave. ISIS is setting these oil wells alight, they are blowing up pipelines, creating huge plumes of black smoke. They're also leaving IEDs and land mines, se we also understand that there have been many Peshmerga injuries up in that operation today as well, John.

BERMAN: All right, key decisions to make about U.S. operations in Iraq. Possible operations in Syria.

Anna Coren and Lieutenant General Mark Hertling, great to have you both with us. Appreciate it.

There is other news to tell you about also. A phone call that may tell us more about where the missing Malaysian plane disappeared back in March. We'll tell you all about this next.

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BERMAN: We have some new details on MH-370. That's the Malaysian Airlines jet that went missing in March with 239 people on board. Airline staff now say they tried to contact the crew by satellite phone after it dropped off the radar.

PEREIRA: But that call failed, which means the plane may have turned south slightly earlier than previously thought.

Let's bring in our aviation analyst, who we have not seen in some time. We haven't talked about this story in some time because there haven't been any new developments. First of all, does this feel significant to you and does it feel accurate and is it startling?

JEFF WISE, CNN AVIATION ANALYST: Those are great questions. And, well, as so often happens with the story, it's difficult to interpret. In fact it's been widely misinterpreted what happened today. The Australians held a press conference, they said that they have new reason to believe that the turn -- that the plane turned south earlier than expected. That's not really quite entirely accurate. You sort of have to read between the lines a little bit.

Now the plane -- this call that you mentioned, this was known about very long ago. So yes, there were two satellite telephone calls that were sent into the plane, so the plane received these calls. This is very interesting, because we know from this that the satellite telephone system was working. So there had been a lot of speculation that the plane had suffered some kind of catastrophic damage and that maybe the plane couldn't communicate. The plane could communicate.

So this is a very important point, it was known a long time in advance. Of course it was known that Malaysian airlines placed this call, they were trying to find the missing plane. So this isn't really new news. So it's a little baffling why it was presented as such.

Also there was -- so the second part of this is that there was data associated with this call, the satellite is able to break down the frequency and the time of transmission from this phone call. And that tells us a little bit about where the plane was going. But this also was known and so what's -- reading between the lines what we can infer is that the authorities have decided to make use of information which previously they had ignored. And that new information allowed them to narrow down the search area, and in the narrowing down it also -- they can also infer it went further south than they originally interpreted.

BERMAN: But they say they are still searching the same basic area?

WISE: Yes, but, there's several search areas, a priority search area, which is only a couple hundred miles long and then a wider search area which is more than 1,500 miles long. So, is it within the bigger search area that they're still looking or within the smaller search area? If it's still within the same high priority search area, you have to ask yourself, why do they even make this announcement at all? Because they've never been particularly precise about explaining the real details of why they're looking where they're looking. So they said we've only moved a little bit, but if it's only a tiny little bit why did they even announce this?

BERMAN: There is a reminder that transparency was never easy to come by in this investigation. Jeff Wise, great to have you back. Great to see you.

WISE: Pleasure.

PEREIRA: We know not much more than we did all those days ago, those months ago really. It startled me when you said back in March, so much time has passed.

Take a short break here. Ahead @THISHOUR, we'll discuss a story, my goodness, a Texas dad accused of killing the drunk driver who mowed down his sons and killed them. He's been acquitted. So why did the jury return a not guilty verdict? We'll ask our legal experts.

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