good evening, i'm cheryl jennings. california's attorney general has cracked down on a mortgage operation she says was fraud. thousands of homeowners were led to believe that lawyers would get them out of foreclosure but instead they found themselves out of thousands of dollars. >> state attorney general pamela harris homeowners were told by the law firms there was a way out. >> they were reaching out to them, letter first and then a telephone call suggesting they could help those homeowners get

out of the foreclosure process. >> these homeowners pay between $4,000 and $10,000 to join others in a lawsuit against the banks. harris says those targeted were angry and felt victimized by loan agencies for their unfair lending practices. >> they suggested that by joining this lawsuit, the banks would have to pay, but the only people that pay for those homeowners who were victimized for the second time. >> here is what the lawyers promised the homeowners. the lease from an imminent foreclosure, interest rates as low as 2% and reduction of their principal. three firms are kramer and caslo mitchell and stein and methol law group all in southern california. one claims to have an office in san francisco's mission district in this building. instead we found another firm,

lot mitigation meant to help foreclosures. when we called we only got an answering service. they raided the law offices in southern california. all three firms have been shut down and assets frozen. the 2500 people in california alone gave these lawyers money. that number is expected to increase because solicitation letters were sent out to homeowners in 16 other states. they say it will begin assessing these cases and may refer them to other lawyers. >> we'll get the files and we will notify them. we'll make, try to make some sort of determination to whether or not they should stay in the case or find another lawyer to prosecute their case. >> then we'll get good lawyers to handle the case. >> according to one investigator as march, homeowners have paid $7 million to these law firms. that number is expected to increase as the investigation

continues. lyanne melendez, "abc 7 news." bank of america tonight, the bank will slash 3500 jobs across the board by the end of september. the bank is also working on a broader restructuring that could eliminate as many as 10,000 jobs. that is about 3.5% of the work force. bank of america shares are down 47% so far this year including a slide of 6% today. hewlett packard says it plans to spin off the computer manufacturing business and stop making smart phones and tablets altogether. officials confirm they are in talks with a british software company whose headquarters to take over the p.c. business. they are hoping to transform itself into a technology services economy like i.b.m. has. the stock was down 6% today.

one expert says investors are reacting first and asking questions later. another big down day for the dow. tonight stocks in asia are following suit. stocks were down more than 2%. dow jones fell more than 500 points in the first half-hour of trading and ended date below 11,400. they were spooked by reports from morgan stanley that we are dangerously close to following into a double-dip recession. one insider said sit tight or buy. >> this could be a buying opportunity. but we don't know where the bottom is. we don't know. where does the down turn stop. >> sell-off helped mortgage rates to the lowest in 30 years,

4.15%. average rate on a 15 year fixed mortgage dropped to 3.63%. a record low for third straight week. >> also weigh in the markets, an especially weak on home sales. sales of previously owned houses down 3.35% in july and number of people applying for unemployment rose above the 400,000 mark again. four week average is lowest since april. cecilia vega reports from dublin tonight where a big housing developers put hundreds of people to work. this is the sweet sound of employment. something mark anderson has been waiting to hear. >> i have been waiting for a job the union giving me a call. >> the call finally came on monday. now what comes next for this construction work her be a much needed paycheck. >> it means everything. it's like somebody threw me a

life preserver. >> it came in the housing development built by kb homes. it's back to work for more than 1,000 bay area residents. >> it's going to create 860 some jobs. that is a lot of pay right now when money is tight and unemployment is high. >> this new community of nearly 400 homes is doing more than providing jobs. >> when it office, half the houses will be sold at market rate but the other half will be low income housing for families and seniors. >> dublin's mayor says the long term economic impact stretches far london the plots of land. >> there is more economic development where other jobs wanted to locate here because they have a place for their workers to work. >> today it is a silver lining in an otherwise bleak economy

but tomorrow's uncertainty like anderson when the construction jobs go away. >> my superintendent said the first job, we stand in crystal houses. you never know when it's going to break. the obama administration has made a major announcement regarding immigration policy that may help undocumented families avoid being separated. department of homeland security announced it will no longer deport undocumented i am ghrants don't have criminal records. they will review the cases of some 300,000 people who are currently waiting for deportation and those without criminal records will get to stay in the country indefinitely and even get a chance to apply for a work permit. the department's priority will be reporting convicted criminals in the united states illegally. >> a murder 32 years ago may be solved. santa clara authorities have arrested a man in the death of a

woman in 1979. prosecutors say dna evidence links david dixon to the murder of rich al mon kree. she was stabbed up to 30 times. it appears the two were smoking marijuana. they connected the dna from the joint. dixon will appear in court on one count of murder in santa clara superior court. >> a two day standoff, peter thomas was found dead of an apparent self-inflicted gunshot wound. police are not saying where the girlfriend was found in the hotel. that incident led to the closure of the richmond-san rafael bridge and one mile stretch of 580. police dropped a thick metal plate in front of his hotel window to keep him from shooting toward the freeway again. he was suspected of stabbing a

supermarket worker on sunday. >> next wave of crime fighting, a police force being able to figure out what criminals are planning and figure out the next danger so often. here is the story from santa cruz. >> we can present deduct the weather, even a person's shopping habits but what about predicting where a criminal might strike next? >> you can predict what people will do. >> it's not as futuristic as minority report where cops picked up criminals before they committed their crimes. >> police in santa cruz, california are getting closer to the future using this algorithm, a complicated math equation to predict crime. >> the map is updated every day. >> it tracks crimes up to the minute and then detailed maps, a

daily forecast where new crimes are most likely to crop up. >> it does more where it will be. tells you when it will be and what time. >> the time of day? >> that's right. >> the weather, even the day of the week all factor in and so does location. criminals like to hit the same spot more than once if they think they can get away with it. >> is this the hot spot? >> we are in a hot spot right now. >> also he says 20% fewer ors on the streets in santa cruz, the technology helps fill in the gap. >> they give you the map and square, it's very easy to understand. >> it seems to be working. thanks to the system, santa cruz police have made several arrests in just six weeks including these two women found casing cars in a crime hot spot. police say predictive policing is likely the drop in burglaries

in july come fired a year ago. now major cities across the country including los angeles are working to start similar programs. go ask any cop and there is really no computer printout that will ever replace an officer's instinct. much more to come this thursday night. coming up, michael finney, a new policy on smoke alarms. one you have in your home may not meet the new standards. sanctions on syria, the growing crisis in the middle east that fueling anxiety. i'm spencer christian. i wouldn't say it's time to get out the winter wardrobe yet. temperatures will be dropping. and from silicon valley, a computer chip that can think on its own. this is your brain on silicone.

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a shooting in menlo park has flowed a highly charged situation at this hour. police are having to restrain a crowd. we understand that a driver was shot and killed by somebody who fired from another vehicle. the victim's car then crashed outside a church. police had to hold back members of the victim's family from getting too close to the crime scene. the victim is 19 years old. the suspect's car is described as an older american car. 7 on your side has learned the state fire marshal that could force landlords and businesses in selling a home to install a new smoke alarm. what is change could mean to all

of us. palo alto's acting fire marshal tests the fire alarms for an important demonstration. the four different alarms have been set up inside the fire department training center. >> 90% of the smoke alarms. >> ionization alarms sets it out with an electric current. some believe they are overly sensitive and too slow to detect smoke. some cities have moved to phase them out. last year the city of albany became the first in the country to adopt a new policy. >> ordinance basically outlawing ionization smoke alarms in the city and replacing with the new type. >> the common alarms are known for their nuisance alarms as they often go off when people cook. >> people take the batteries out and they have no protection at all. >> we asked them to put

different alarms to the test. photoelectric alarms use a beam. the common ionization alarms use an electric current. microprocessor combine elements of both using computer technology and dual seven ser is both in the same unit. use be a barbecue starter the firefighter creates smoke. it took less than 30 seconds for the first alarm to come off. >> you can see some of the smoke coming out here. all right. let the first alarm activated. the dual seven ser was the if first one that was activated. that is where the range of is and a is the best protection for your family. >> it wasn't long after that when the microprocessor rang. >> there are two smoke alarms

that have gone off so far. >> reporter: the remaining two alarms sounded simultaneously less than a minute later. firefighters conducted a second demonstration setting a slow simmering fire. >> there is a photoelectric and photo ionic alarm will go on sooner. >> reporter: in fact both the photoelectric and dual alarm went off simultaneously. seven minutes later the other alarms had yet to go off. what is being common insulated this slow going fire is very tough for ionization. one of them went off. >> now there is a new technology out there, we shouldn't fight it. we should get the newer technology into the homes. the state fire marshal will release 16 recommendations up to

tomorrow. it would take two years to turn into actual legislation but albany and palo alto say they don't have to wait. smoke alarms need to be changed every ten years and now would be the good time to go to some kind of photoelectric alarm. precious seconds can save lives. time for spencer christian. >> cooling down is improving. you like it cool. it is improving the sea breeze and marine breeze. temperatures are dropping. we're going have cooler days. here is a live look from san francisco looking back across the skyline. you can see evidence of the marine layer there and warmer here on the close-up satellite image, low clouds and fog pressed up against the coastline sea breeze bringing the cooler

marine air. it didn't reach far enough today, but it will drop temperatures tomorrow. 97 in ukiah and 94 at clearlake. over in the inland east bay, 92 at antioch. upper 80s in upper east bay locations. 60s around the bay and right around 60 degrees on the coast. right now, 56 degrees in san francisco. 60 in oakland and 62 in concord and balmy 77 in antioch. low clouds and fog will continue pushing inland tonight. cooler in all areas tomorrow than today. temperatures will rebound next week but we have several days of temperatures below average. now overnight tonight, see the fog and low clouds pushing rather far inland. tomorrow morning, 5:00 at the beginning of rush hour, clouds will push back to the coastline. lows will drop back in the 50s. satellite image shows the big picture, jetstream dipping down,

a little trough adding to the cooling effect. we can expect cooler days right into the weekend. it will be next week before we start to warm up. high temperatures tomorrow in the south bay will be mainly in the mid to upper 70s. 76 in san jose, 77 in campbell. on the peninsula, look for highs ranging from upper 60s to low 70s. a high of 58 in half moon bay. downtown san francisco, a high of 63. 58 degrees in the sunset district. up in the north bay, wide range, 66 in sausalito to 76 at novato and santa rosa, go up to ukiah where it will top out 91 degrees and 88 at clearlake. 64 in richmond and 70 in union city and 72 in castro valley. inland east bay, highs in the upper 70s to low 80s but mid-80s farther east like antioch and

brentwood. inland, low 80s in gilroy and morgan hill. here is the seven-day forecast. pretty cool coming up friday and saturday with temperatures well below average. we'll warm up gradually on sunday gaining a couple degrees each day until mid-week, 80 degrees around the bay. >> all right. spencer, thank you. >> still ahead, your brain on silicone. coming up next, with a new chip

former head of the consumer financial protection bureau gets closer to the senate today.

they set up a exploratory commission for warren. she would challenge scott brown. democrats tried to keep control of the senate. >> computers are one step closer to bringing the way closer to people. a chip is modeled after the human brain. jonathan bloom has the first look at it. >> imagine a computer that can be taught in the same way as you teach a dog, good dog, bad dog. >> computer scientist might call it his brainchild. >> we have produced in working silicon, a tiny chip that makes it the core elements of the brain. >> he says it's the missing piece to modern computing. they have been good at crunching numbers but not so good at recognizing patterns or making

predictions like the right side of brain until now. >> researchers call this the brain wall, every one of these yellow boxes represents one of these new chips and each one represents a neuron and neurons eat a ball. >> they showed us how the chip how it can play pong by looking at the screen. >> it's controlling the pad. >> will they have trained to it read handwritten numbers and predict which one you are drawing. it works better if you have neat handwriting. it's still in the infancy but the applications could be far-reaching, everything from detecting threats at airport security to sniffing out rotten food. the project started as one man's dream. now a team of hundred people have proven it can work. >> a fundamental change from what if, to what now.

a new federal bill could give the unemployed a better chance of getting hired. the fair employment opportunity act would be make it illegal to discriminate against the jobs. lawyers say it could lead to lawsuits. >> low interest rates, and new jobs, sales manager at one high-rise says 25-30% of buyers are paying cash. capital club is getting a big renovation. dining club will have outdoor fire bits pits and have a eight-foot flat screen tv. more in tomorrow's silicon business journal. >> when we continue tonight the battle for libya. critical events by rebel forces.

>> and i'm nannette miranda in sacramento. there could be a salary cap of all the campuses as it comes as they got hundred thousand dollar raise while the students got stuck with a 12% tuition hike. >> and newborn polar bears. [ female announcer ] what's so great about jcp cash? no exclusions! with jcp cash, earn 10, 15 or 20 dollars o on the spot... ...storewide! and, unlike other stores,... ...we don't make you come back to save. get up to $20 off with no exclusions! we make style affordable. you make it yours!

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jcpenney. >> good evening. california's attorney general has taken down what is being called a large mortgage f operation. they have duped desperate homeowners in 17 states to get them out of foreclosure. three firms have been shut down

and assets have been frozen. >> a police standoff at a san rafael hotel has ended a special camera confirmed the death of peter thomas. he was a suspect in the supermarket stabing when he was confronted by police at the hotel yesterday. >> new worries about the economy prompted a global sell-off in stocks. the dow fell 419 points. asian stocks also in friday trading. >> new bill to stop precedence from cal state universities from pay raises while students get socked with higher tuition fees. >> reporter: they are gearing up for the fall term, a new proposal out of sacramento how presidents are selected and how much they are paid. it comes after they approved the hiring of head of san diego from an east coast school at hundred thousand dollars more than his predecessor and raise tuition 12% at the same time. >> clearly a portion of tuition

fee hikes to subsidize that person's salary. during lean budget times it's the wrong thing to do. >> a state senator says to limit the pay to $340,000 a year, that is 150% of the salary paid to the chief justice of the california supreme court. no raises or bonuses would be allowed if a tuition hike occurred within three years. internal candidates had you is must be given preference for the job. a new committee is investigating presidential pay and selection practices but in the past administrators said they need to pay well to be able to recruit the best. the proposal is popular among students who have been protesting tuition hikes. it's raining death because of all the loans they had to take out. this year,5500 price tag is

too much for some. >> one of my friends who don't have financial aid, they dropped out. >> the students' perspective what families are going through, too. >> the bill is modified for usc because the legislature has very little control over it. the president there announced $140 million in merit raises for faculty and staff. and students are paying 10% more in tuition this year. the united states is has joined a growing chorus of nations calling for syrian president to step down. obama administration is imposing tough new sanctions to choke off oil and gas revenues. mark matthews with reaction from the divided syrian community here in the bay area. >> reporter: brutal crackdown on anti-protestors dragging on for months, finally they issued an

ultimatum to the syrian president. >> the transition to democracy in syria has begun and it's time for assad to get out of way. >> leaders of several countries in kaug calling for assad to go. washington had previously resisted much to the frustration to pro syrian americans. >> i think it was clear-cut that the regime was not going the transition peacefully. >> he was raised in a muslim family and tells me syrian americans are generally united against assad. but at a church here, they tell me christian syrians are worried. >> what i'm hearing my brother, there are people with guns with people that interfering and the regime is doing a brutality in stopping all this violence that

is happening. >> reporter: he stresses assad violence but assad regime protected the christian minority and christians are worried that it could be an islamic state. >> we don't know who is the opposition. we still don't know who is the opposition. do we see any person or any demands from the opposition. the only thing they are saying, you areout. >> reporter: the doctor dismisses that road. >> if you look at the protests, i will agree to that but many of protestors say the slogan is kurdish, muslim, christian, we are one. >> reporter: this saturday they are holding a rally in support of a pro democracy regime change in syria. it's scheduled at 4:00 p.m. on saturday in union square.

>> it's been a violent day in israel. gunmen launched a series of attacks killing six civilians and israeli soldier. israel's military says it will eventually kill five of the attackers and three of the bodies were wired were explosives. they are blaming an armed group in gaza. gunfire continues on both sides of the border. [ gun shots ] after heavy fighting rebel forces in libya have gained control of an oil refinery outside of tripoli. the international intense. khadafy's troops have been pounding homes and mosques in streets with rockets and mortar fire. rebels are not giving up. >> we tried to redistrict

destroy our village and/or house and protect our house. >> tripoli is considered vulnerable, that city is already shaky. people say there is no electricity. now, to a rare expedition in the arctic. coming up, there is only one thing cuter than a polar bear and that baby polarwñ

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seven former players are suing the n.f.l. over handling of concussion related injuries. suit accuses the n.f.l. of negligence and intentional misconduct in reports. they claim the league doesn't properly treat them for concussion. a spokesman says the league hasn't seen the suit but would vigorously protest against any such claims. >> a new study claims that polar bears are going farther. one bear was tracked 426 miles. it's extremely rare to see

remote territory of polar bears but one reporter did it after very long trek. >> we were joined up with a small group of some of the world's leading wildlife photographers for the privilege of seeing something so rare, only a few hundred people have ever experienced up close. polar bear mothers taking their you in nau born cubs for the first time. a flight to winnipeg followed by a small plane and then a bizarre two and a half train ride through the arctic which ends nowhere near civilization. >> we are in the middle of nowhere, approaching 40 below. the train is leaving us. >> another hour later, we're at a place called the wache lodge there is no running water and space is limited.

inside, wildlife photographer photographers from every corner of the globe. they pile into vans hoping to fight white bears hidden in white snow caves in conditions that can kill a person in minutes. it's more than 40 degrees below zero with ridiculous amount of clothing a surrounded by people that have fresh frostbite and there is us mistakable footprints. we're tracking a polar bear family. >> checking out the area here. there may be a den close by here. >> on the first day, we spent eight hours in a hole in a snow. and then. cold so painful it made my hands feel like my hand feel like it

was being snabs and then a cub playing and tumbling back inside. when you see them they are like walking fluff balls. if youe ever seen pictures of baby polar bears, this is why they were taken. >> these baby polar bears, this the first time they have seen. they are emerging from the den. she is introducing them to the world. cubs or cubs. they are playful and they are enjoying themselves and they are experiencing the world for the first time. >> lifelong tracker finds the clues from the back of his snowmobile and he has a face of frostbite burns to show it. >> your must that attach is ice right now? >> yeah, it's always like that. >> are there certain spots you routinely seeing them making

dens? >> not really. they are just traveling and short stop and rest and nurse and away they go again. >> we were incredibly lucky and found bears for four days straight. they travel here in november to to have their young emerging in strirng spring to make a 40 mile walk back to hudson bay and frozen water that will take them to their first solid food. >> i am amazed and one of the most privileged people on the plan tote be here. this is part of my job. there is few humans that get to be this close. >> pete is here to study them and he says climate change is dleekt the sea ice these bears rely on to reach the only feud they count on, seals. >> the answer is pretty

accurate. more than half will die in the first year. that critical survival of the cubs is determined recruitment into your population. >> he says our trek matches the static. single cubs from mothers that routinely used to have two. our last day would be the exception. >> suddenly hours of breakdowns open yet to another slumbering mother but this time with three cubs slowly waking up to play. as the week goes on, the photographers are freezing as the mother makes a move. watch the cubs, did you catch submit one photographer did. the mother bear hulking size seems to unravel as she climbs

out and three to w push on. they are just the starting to give skeptics hope. >> they've got a great supply of warm milk and beautiful mom. life is so good so far. >> in two years they will be on their own. this has the feel of another planet as the polar bear's long journey marches on. just amazing. still ahead, bart's police officers as robo cops? [ man ] i got this new citi thankyou card

and started earning loads of points. you got a weather balloon with points? yes i did. [ man ] points i could use for just about anything. ♪ ♪ there it is. [ man ] so i used mine to get a whole new perspective. ♪ [ male announcer ] the new citi thankyou premier card gives you more ways to earn points. what's your story? citi can help you write it.

bart's board of directors may meet on wednesday to find out when and is the cellphone blackouts is way to deal with protests. it's getting attention in taiwan. they released a video about it. >> the animation shows bart police officers known as robo cops battling it out on a station platform with a c.i.a. like member of anonymous.

youtube video shows what appears to be bart spokesperson linton johnson pressing a red button to kill service at the station. they have made other videos in the past about san francisco news stories. >> wow. >> okay, spencer. >> no robo weather, low bro weather. here is mount tam. this is actually from sutro camera. you can't see much of san francisco because the marine layer was flowing inland and continues to do so tonight. douth down south, couple storms, hurricane greg moving away from land masses possible go know threat to populated areas and tropical storm fernanda which is on a path that may take it south of hawaii. back to the bay area tomorrow,

high temperatures will be dropping off into the low 80s in most inland areas, 60s to 70s around the bay and upper 50s around the coast. here is the seven-day forecast. after two much cooler than average days, friday and saturday, temperatures will rebound a bit and we'll be back in the low 90s inland and upper 70s around the bay. >> you are a knowledgeable person, i want to ask you a few things. if you don't know, retreat or sexting so far. they added 400 new entries to the 12th edition. and this one includes. cyber bullying, domestic godess and there is several others. here is how, joe lost and

domestic goddess jane after shigd many pounds after using a gastric band. that calls for a double woot? >> we'll do the whole sequence. >> we all just got new jagging. >> i wanted to get the to the woot of the giant's trouble. >> we know what their problem is. they don't score. >> and manages one mistake. would it4 8

>> coming up at 11:00, soaring price of got is attracting the attention of thieves. a basketball game that turned into a brawl. it was supposed to be part of a goodwill trip to china. that is over on channel 7. right now for larry beil. what is with the giants? >> and don't kim the messenger but giants and a's. and survival is one right now. tim lincecum was out in atlanta where giants were hoping to win back-to-back games. now lincecum has been pitching great as of late. mike miner was also very strong

tonight. and pablo sandoval, it going to find the stands and uses every inch and smack that one. lincecum. wishes he could have had that pitch back, chipper crushed it. 1-0 and fan caught it bare-handed. giants had five hits and here is a diving catch with orlando cabrera. giants lose 1-nil. and trevor cahill struggling this year. kobe has clout and he got it. 4-0 blue jays. this come back from jose bafista goes off the glove and allen

drops it. next batter, base hit scores eric. cahill, seven runs allowed. 7-0 and cahill is 9-12 on the year. >> and fill, nailed in the forehead. a ball hit, he bounced right back up and that left a mark. he ended up leaving the game but he is okay. on to football, raiders are getting set for the battle of the bay. square off the 49ers in pre-season action in candlestick. raiders are dealing with a bunch of injuries. quarterback johnson had surgery and so is mcfadden. he acknowledges the raiders are banged up but will never use that as an excuse. >> they need to look around the league. i think everyone is having

similar issues. the differences ours have been with some of our top line players. that is going to happen. i would rather it happen now than happen later. >> we know this about stanford quarterback andrew luft looked the cardinals and dealing with the media. no hesitation when asked about the sports illustrated cover. he is sharing the cover with four other players this week. >> bother me, no. it's good for stanford program and stanford players are getting that type of circulation and recognition. no, it doesn't bother me. >> it's going to be biggest fight in the career and off indefinitely. boxer from gilroy had to pull out the super lightweight title fight. the bout was scheduled to take place on august 27th in san jose but he injured his left shoulder and the fear is torn rotator

cuff. the bout was going tell viced by hbo. if the shoulder injury is not that bad the fight could be rescheduled. >> on to golf, four marriages are in the books, they now focus on fed ex cup, jim furyk, two in back of the leader. he is died on top of leaderboard >> a brawl at georgia town basketball team ended up fighting it out. they were playing a chinese professional team, bayou rockets. and from the outset, a brawl erupted with one player getting hit with a chair. you want to talk about

embarrassing on a goodwill tour turns into a brawl. now versus joe biden was with them for part of the tour. he attended one of the games but not there for the brawl. they would have behaved themselves if they knew that he was there. >> how do you come back from that? >> you move on. >> something else. that is going to do it for this edition. i'm cheryl jennings. for all of us, th doug: hey, j.d. just preppin' mr. hovey for brain surgery. doug, mr. hovey's havin' rotator cuff surgery.