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reporter: driving the streets of houston with an agent from atf. we can t tell you who he is. he s in the midst of the biggest case he has ever worked, battling lethal mexican drug cartels on american streets. we start seeing them popping up in mexico and then further down into guatemala, where it really opened our eyes about okay we re on to something that s pretty big here. reporter: they found a trail from houston to guatemala, littered with almost 340 guns purchased by so-called straw buyers, 23 houston area residents, all of them with squeaky clean records and legally allowed to buy guns. investigators say almost 100 of those guns have since turned up in crime scenes south of the border, in the hands of the drug cartel. they re fighting each other for turf in mexico and, unfortunately, many law enforcement and civilians are being killed in that fight. reporter: the man in this undercover photo is john philip ....