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UPDATE: Suspect Identified In Fatal New Year's Eve Shooting In Old Sacramento

SACRAMENTO (CBS13) - A 22-year-old is in custody after allegedly shooting and killing two people and injuring two others during a fight in Old Sacramento that led to the cancellation of the city's annual New Year's Eve celebration Monday night.

An argument began at the Sports Corner Cafe on corner of 2nd and K Streets at about 9:38 p.m., according to the Sacramento Police Department. The argument escalated into a fight and an employee went to break it up. During the fight, a man pulled out a gun and shot several times at the people he was fighting with.

Police on Tuesday identified the suspect as Carlito Montoya. He's under police custody at a local hospital receiving treatment for multiple gunshot wounds.

Bouncer Daniel Ferrier, 35, an unidentified woman, 30, another restaurant employee in his 20s were shot. The woman suffered a non-life-threatening injury to her lower body, but the two men were shot multiple times and died.

Hearing the shots, a security guard confronted the suspect, and the two exchanged gunfire. Both were hit.

The gunman ran from the bar toward the crowded street where he literally ran into a police officer in uniform and was taken down.

Montoya and the security guard were taken to the hospital.

"They had one person in an ambulance and one person in a cop car," one woman said.

Warning: Video contains profanity

Chaos After Deadly Shooting In Old Sacramento by ramtintey on YouTube

"I saw the gun in the hand. He was just screaming and shooting," another woman said.

Some 40,000 people, including lots of families with young children, had gathered in Old Sac for a 9 p.m. fireworks show shortly before the shots rang out. Another fireworks show scheduled for midnight was canceled. A Sacramento Police helicopter circled overhead to announce the midnight cancellation.

Mounted police, patrol cars and Sacramento fire trucks converged on the scene as thousands of spectators were blocked off from the crime scene.

Witnesses described hearing several shots and then running for cover.

"Probably 12 shots that I heard. I saw people running out of the building and falling down into the street. Whether they were injured or just trying to hide, I don't know, but I hid under the stairs until I felt like I could leave the area," said a witness.

"Pop, pop, pop, pop, pop," one witness said. "It sounded like a Glock."

The owner of the bar refused CBS13's request for an interview. Everything remains in the bar as it did last night. Drinks sit on tables and money can be seen on the bar.

The fireworks show canceled by the shooting was instead set off on Tuesday morning at around 8 a.m. in an odd, eerie display. City officials say the fireworks were to dangerous to disarm, so they decided to fire them off.

Raw: Old Sacramento Fireworks Display Shot Off In The Day

Like many residents living near Old Sacramento who slept in after a night of celebrating, West Sacramento Mayor Christopher Cabaldon tweeted his surprise at hearing the explosions.

Sacramento Mayor Kevin Johnson issued the following statement on Tuesday:

"Like many Sacramentans, I was shocked and saddened by the news of last night's shooting in Old Sacramento. Since visiting the scene last night I have been in constant contact with Acting Police Chief Schiele. The Sacramento Police Department had a thorough security plan in place that enabled officers to respond immediately and apprehend the suspect at the scene.

While this is a tragic start to the new year, we must keep in mind that this was an isolated incident that is not typical for Old Sacramento, which hosts thousands of tourists each year and many successful events and festivities. Our thoughts and prayers are with the victims and the families who lost loved ones last night."

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