CHICAGO (CBS) — Federal ATF agents were trying to put a dent in illegal gun trafficking in an undercover operation when an ATF agent was wounded in a deadly shootout.

CBS 2’s Jeremy Ross reports the agent is recovering at Methodist Hospital Thursday night after he was shot several times.

A source tells CBS 2 law enforcement is continuing to look for at least one other person connected to the shooting incident.

The shootout happened around noon in the neighborhood of 6th Avenue and Kentucky in Gary, Indiana.

A source tells CBS 2 that ATF agents were conducting an undercover operation in the area, focusing on the supply of illegal firearms, when the agents were ambushed on the job.

Ben Miller, who lives across the street, says he was home taking a nap when he was awakened by the sound of gunfire.

“There was a car that sped away, then the ATF basically had their guns pointed at a house across the street,” recalled Miller.

Miller says gunfire is common in his neighborhood.

The Lake County Coroner’s Office says 28-year-old Raymon Truitt II was shot and killed in the incident.

The ATF agent was shot twice in the chest and the arm. He is in critical, but stable condition.

“I would like to thank the law enforcement, community, the hospital staff, and public for the outpouring of support that we’ve received so far,” stated Brendan Iber, Assistant Special Agent in Charge with the ATF.

Police say there is no timetable as to when the shooting investigation will be complete.

The name of the ATF agent has not been released.