♪ >> pelley: this looks like an arena concert, but it's a private party for the super- rich. the robin hood foundation's annual fund-raiser seats 4,000. >> brothers and sisters of robin hood... >> pelley: billionaires, stars and athletes are here to lay credit cards at the feet of paul tudor jones. >> the risk is not doing it. so, what is this modern-day robin hood doing with all this money? that's our story tonight. >> martin: football is violent, no doubt. but it's nothing compared to war. ( explosion ) and just as the national football league has struggled to come to grips with head injuries so has the military, but on a much vaster scale. >> are these individuals that are going to come back from iraq and afghanistan that have had repeated mild brain injuries, are those going to be like the retired nfl players? they're committing suicide. they have problems with dementia. >> i'm steve kroft. >> i'm leslie stahl. >> i'm morley safer. >> i'm bob simon. >> i'm lara logan. >> i'm scott pelley. those stories tonight on "60 minutes." >> cbs money watch update sponsored by: >> glor: good evening. the s&p opens above 1600 for the first time tomorrow. gas prices have fallen 10 cents in the last month, and wal-mart reclaimed the top spot. i'm jeff glor, cbs news. we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ to try on these amazing depend silhouette briefs.ears. oh, it's cheryl burke! who's this guy? 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>> stahl: he's also a green beret, who, after returning from iraq, had an ah-ha moment when he was talking to a gas station manager in springfield. >> cutone: gang members would come in there, pull out a weapon, point it at employees or patrons, take what they want and walk out. no one was calling the springfield police, and no one was calling the state police. >> stahl: what this community was dealing with was gangs. they are a criminal enterprise. how are they like insurgents in iraq? >> cutone: insurgents and gang members both want to operate in a failed area, a failed community or a failed state. they know they can live off the passive support of the community where the community is not going to call or engage the local police. >> stahl: the similarities to the iraqi town he had lived in and defended were so striking that he sat down and wrote out an action plan for springfield. >> cutone: we had this concept of what we would call a pilot team where you would handpick select troopers, give them specific training and embed them in the community and start winning over the community. >> stahl: he proposed his plan, a counterinsurgency program, to springfield's deputy police chief, john barbieri. but he was saying he was going to bring military tactics into an american city. i mean, you must have had some qualms about that. >> barbieri: well, once it became clear that he wasn't talking about checkpoints or fast roping from helicopters, that he was talking about going door to door, organizing the neighborhood into a collaboration to report crime, to get involved in solving their own problems, it became obvious to me that that was exactly the type of program i needed for this neighborhood. >> stahl: barbieri and trooper cutone took us to a housing project in that neighborhood known as the north end. i heard that there were gang members on motorcycles with ak- 47s on their backs, right out here. >> barbieri: they were very well organized. they had lookouts. they disappeared when the sector cars came. >> stahl: they were just riding right up here in front? >> barbieri: they were establishing the fact that this was their territory, and they were willing to fight to keep it. >> stahl: deputy police chief barbieri was desperate for a way to break the gangs' hold on the community, so three years ago he agreed to let cutone and a small team of elite troopers-- most of them war veterans, too-- target the north end, which had become a violent marketplace for some of the cheapest heroin in the whole country. in addition to drug busts, they walked the streets, knocked on doors, hung out in neighborhood shops trying to woo the locals. >> cutone: here for pastries today, food? >> woman: yes. >> cutone: outstanding. this is the best place in springfield! >> stahl: but there was a lot of skepticism; not everyone welcomed the troopers. >> cutone: i could remember one door, the last knock of the day i had. a grandmother comes out, and she just tee'd off on me. wanted nothing to do with me, used colorful language, said the police were racist, et cetera, et cetera. >> stahl: but they kept at it, almost daily... >> cutone: trooper mike cutone. nice to see you, sir. >> stahl: ...and eventually began developing sources and tips. >> cutone: we're not just using bad guys for information and getting information; we're using the other 99% of the population that live there, winning them over. they become our eyes and ears. and the floodgates have opened for criminal information that we can go after now. >> stahl: the floodgates have opened? >> cutone: yes, they have. >> stahl: that much? >> cutone: yes, that much. myself and the other troopers, my phone is ringing constantly every day, either text messages... they'll send me pictures of where they located guns. they'll send me e-mails of who's selling drugs. >> stahl: one of the keys to building trust in iraq, cutone says, was having his counterinsurgency team move into the town, sending a message: "we're not going away." yeah, but eventually you drive off. >> cutone: we do drive off, but when we drive off, we've given them a template on how to control their town independently and without fear. >> stahl: with the uncertainty about counterinsurgency's ultimate success overseas, the troopers and local police are determined to build something permanent in springfield. >> cutone: as always, remember why we are here. >> stahl: and essential to that is a regular thursday "elders" meeting. local residents come together with politicians, police, health and housing organizations, educators, businessmen and latino leaders. so, how important are these meetings to the overall mission? >> cutone: they're crucial. what we found out is, you had all these different groups that do good work for low income folks in troubled areas. none of them were talking with each other. so, the thursday meeting brought all these people together. karen pullman, a nurse from baystate, raises her hand at one thursday meeting and says, "hey, i want to create a walking school bus." we're like, "what's a walking school bus? that's great." >> stahl: fear of the gangs was so high that parents and kids were often afraid to walk the streets. >> cutone: carlos, miguel. nice to meet you, carlos. >> stahl: now, big, burly troopers and teachers walk neighborhood kids to school. it's a strong visual message to the families there, that the troopers and police are protecting their children and taking control of the streets back from the gangs. >> cutone: and that's the beauty of the thursday meeting. it's empowering the residents and the people that come to it. >> kit parker: lesley, they're just like the village elder meetings i was doing in every village i patrolled in... in afghanistan. >> stahl: major kit parker is a professor of engineering at harvard. he also led counterinsurgency operations in afghanistan. >> parker: the key thing with counterinsurgency based on my experience is: make a friend. make a friend. i don't have to find the enemy, i have to find a friend. if you find your friends, they're going to take you to your enemy. >> stahl: he was on national guard training one weekend two years ago, telling a group from his unit that he wanted to find a police department to test out using counterinsurgency against gangs. believe it or not, mike cutone was in his unit. >> cutone: and then i shared with him, "hey, we're doing this in springfield," and his eyes lit up. >> stahl: his eyes lit up? his jaw dropped, is what he told us. >> cutone: yeah. >> parker: he said he had a bad gang problem in the north end of springfield. he said people were riding around on motorcycles with assault rifles slung over their back. and i got this vision of mogadishu. i got this vision of kandahar province where i saw this all the time-- two guys on a motorcycle, one's got a ak-47 on his back. and then i told mike, i said, "i teach a class at harvard. let me see if i can bring this class in on this." >> stahl: and so, last spring, parker turned his junior engineering class into a counterinsurgency lab. >> parker: help me understand what kind of intelligence i need to collect when i am in the field, whether it is in the north end, i'm on main street standing by the taco truck, or if i am in kandahar city. that's the kind of data i need. >> stahl: parker had his students, with their computer smarts, develop software for intelligence collection. with it, the troopers are building a database of gang members similar to what special forces are doing overseas. >> trooper: you have to do tattoos. >> stahl: the troopers collect data as they book suspects, like criminal histories and tattoos... >> trooper: two tear drops. >> stahl: ...and use the information to make maps of the gangs' social networks-- who they know and who they associate with. once a gang's key figures are identified, the troopers try and remove them from the streets in hopes of fracturing the entire network. >> cutone: hi, ma'am. how are you doing today? >> stahl: cutone brought parker and his students onto the streets of springfield so the class could survey the residents to see if any of the symptoms of that failed community had been alleviated. >> parker: they took a look at everything from s.t.d. rates in neighborhoods where you have gang activity, litter, graffiti, school attendance, all of these things. >> stahl: they found that since the counterinsurgency operation started, north end schools have seen fewer discipline problems and drug offenses, and that litter and gang graffiti is no longer everywhere in sight-- important indicators, parker says, that the community is no longer totally under the gangs' control. >> parker: what we're seeing is that the number of calls for service is going up in the north end. so, that means... >> stahl: they're reporting crime. >> parker: that's right. they're reporting crime. and i see that means the legitimacy of the mass state police and the springfield p.d. has increased, and the residents of the north end realize they are their instrument to clean up their neighborhood. >> teddy cupack: i've been robbed 55 times that the police know about, but not lately. >> stahl: at the thursday community meeting we attended, residents like teddy cupak said this is the first time the police have really made a difference in the north end. >> cupak: this is what i want to get across: this concept does work. it sort of flushes them out. i don't know where they go. i hope they get help. >> cutone: well, hey, teddy, some of them are going to work, and some are going to jail and some leave. >> cupak: that's right. >> cutone: that's my cell number. don't give my cell number out. i don't want to get prank phone calls at 3:00 in the morning. if you are really looking for a job, we know a guy that hires kids and puts them to work doing construction work. >> stahl: let me ask you something. those functions that you are performing, that sounds to me like a social service job instead of a police job. >> cutone: if the government is not going to do it, or individuals aren't going to do it, why can't the police provide leadership or partner up with the community and say, "hey, here's a plan, this is what we want to do to help"? because the status quo of traditional policing, it ain't just going to work. it's not going to work. >> stahl: but you are still making drug arrests. >> cutone: but, see, you are misconstruing it like you're going to eliminate drugs completely. you're not. what you want to do is reduce it to a level where you can manage it and then single them out one by one, versus having it rampant throughout the city. >> stahl: springfield police say they are managing it in their target neighborhood of the north end. they say violent crime fell last year by 25%; drug offenses dropped nearly 50%. >> cutone: how long ago did that happen, sir? >> stahl: to show us how they're using the tips they're getting to fracture the gang networks, cutone took us on a nighttime drug raid. >> police radio: target's out, target's out. >> stahl: it was like a military operation adapted in interesting ways for an american city. >> cutone: they are in what looks a bread truck, an unmarked bread truck. >> stahl: but the bread truck was filled with a swat team looking like soldiers riding into battle. >> police officer: state police, search warrant! state police, search warrant! >> stahl: as they burst in, someone on the second floor hurled something out the window. what do they got? >> cop: looks like a glock. >> stahl: a semi-automatic pistol. they also found around five grams of heroin and arrested three young men the police say are drug dealers, members of a local gang-- one of them just 15 years old. but that wasn't the most important thing the team did that night. very quickly, cutone and the troopers turned their attention to the neighbors. >> cutone: i'm sorry, what is your name? >> carlos: carlos. >> cutone: carlos, nice to meet you. i like your rosary. i got one in my pocket. >> stahl: even on these kinds of operations, they put on the charm offensive. >> cutone: we want to engage these other folks and let them know what's going on and why we're here. >> stahl: and that was part of the operation. >> cutone: absolutely. >> stahl: this summer, mike cutone and his army unit are being deployed to teach counterinsurgency to the afghan forces. having brought what he learned at war home, he now wants to bring what he's learned on the streets of springfield back to afghanistan. >> cutone: good to see you. you take care. >> go to 60mintuesovertime.com for a tour of the harvard laboratory where science meets war. i have never encountered such a burning sensation... until i had the shingles. it was like a red rash. like somebody had set a bag of hot charcoal on my neck. i had no idea it came from chickenpox. it's something you never want to encounter. for more of the inside story, visit shinglesinfo.com trust your instincts to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about the only underarm low t treatment, axiron. i watched on television a ten day, six hundred mile race, and i thought, wow. i really want to do that. unfortunately, the reality was that i weighed almost four hundred pounds. for a couple years i just really lost the weight and got in shape. as we were heading towards the finish line, linda starts crying, my friend. and i said, why are you crying?' and she said, well, you just accomplished your goal! wow, i can do anything that i want to do, just looking back on that moment. mutual of omaha. insure your possibilities. insurance. retirement. banking. investments. >> pelley: ask wall street bankers the net worth of paul tudor jones, and they'll tell you $3.6 billion. he's one of those hedge fund managers. but ask a homeless child or a struggling family, and they'll tell you that a spreadsheet is no way to measure a man. paul tudor jones wonders that if billionaires like him are such geniuses, then why do nearly two million people live in poverty in new york city alone? in 1988, he started a charity called the robin hood foundation. 25 years later, robin hood has given away more than $1.25 billion. it's become the city's largest private backer of charter schools, job training and food programs. tudor jones has learned hard lessons; for a latter-day robin hood, it turns out giving to the poor is harder than he thought. and as for taking from the rich? well, he finds it's best to distract them. ♪ this looks like an arena concert, but it's a private party for the super-rich. the robin hood foundation's annual fund-raiser seats 4,000 in manhattan's convention center. >> seth myers: it's amazing who is here tonight. give yourselves a round of applause. it's like the 1% has its own 1%. >> pelley: they laugh because it's true. billionaires, stars and athletes are here for the 22nd year to lay credit cards at the feet of paul tudor jones. >> tudor jones: brothers and sisters of robin hood, new ideas, different ideas, crazy ideas-- those are the ones that change the world. and boy, does the world outside these walls need changing. >> pelley: what do you see when you look around the city? >> tudor jones: i see people in pain, people in need, people at ti