During the rule of the dictator Queen Deirdranna, Carlos Dasouza was second in command of the rebel army, stationed in Omerta. Both Dasouza and rebel commander Miguel Cordona (along with several other brave rebels) actively participated in the liberation of Arulco.
Much to Dasouza's disappointment, after Arulco's liberation he started playing less of a role in the government than he had envisioned for himself. After being the second in command of the rebel movement he had assumed he'd be awarded a powerful position in the new government of Arulco. Instead he felt put aside after being made mayor of Chitzena. This despite Cordona's arguments that this was in fact quite an important position, Chitzena being the major tourist attraction of Arulco and, in fact, the most important tourist attraction of the whole region, and one of the fastest growing towns in Arulca.

Chitzena was a town on the verge of becoming the metropolis of Arulco. Population had reached almost three time the size of Meduna, the countries capital. The government was negotiating with the Disney Corporation and several other large investment groups about the development of the tourist industry centered around it's famed ruins. Disneyland Arulco was in the final design stages.

When the deal was finalized, Dasouza transferred the initial payment to an unknown Cayman Islands bank account and fled the country.

Meanwhile Traconia was still very vulnerable after the assault (operation codenamed 'Unfinished Business') on it's missile base. Dasouza saw his opening and hired a team of assassins to take down the government of Traconia and declared himself sole ruler of Traconia.

Arulco launched an assault to liberate Traconia by sending in a small commando-team, a tactic that had worked so well in the past. Part of the team was hired through AIM (Reaper, Scully, Malice, Red) and MERC (Gumpy, Bubba, Larry). One volunteer from the former Arculcan rebels also went as part of the team, Dimitri. The operation codenamed unimaginatively 'Unfinished Business 2' went horribly wrong. Rumor has it that at least 2 members of the team defected to Dasouza's side. It was definitely not Gumpy as his head was mailed to Enrico Chivaldory as a warning to deter further action from Arulco. Also in the package was a small note: 'Arulco is next'.
Apart from Gumpy and the (at least) 2 traitors, the rest of the team remained MIA.

Two months ago, the Traconian army, under the leadership of Dasouza invaded Aruclo.

Amongst the invading army were several mercenaries from a small agency named Doomsday Inc, the same agency Dasouza used earlier to take over Traconia. Doomsday is a relatively obscure mercenary agency that, until recently, was mainly active in Africa and Central America, being hired primarily by oppressive governments to combat rebel groups and civilian uprisings. They were known for their ruthless actions agains both rebels and civilians, frequently performing acts of rape and massacre and genocide of complete towns and villages.
Recently they moved the biggest part of their operation to Traconia, following an assault on their headquarters in Guatamala. This assault (codenamed 'Clean Sweep') was conducted by a Black Ops team, believed to be American. The American gouvernment, however, denies any involvement in that operation.
Most of Doomsday's personnel was recruited in the Arulcan and Traconian armies, forming elite units.

Also amongst the invasion force were 3 of the UB2-team: Scully, Reaper and Bubba. This leaves Red, Malice and Larry still MIA. Dimitri Guzzo, though wounded, managed to return to Aruclo shortly after the invasion and has joined up with the local resistance.

Dasouza returned to Traconia to oversee the construction of several missile sites, leaving his wife in charge of Arulco. She turned out to be an exact copy of former Queen Deirdranna in both her brutality against the Arulcan people and her desire to create obscene creatures.
The research into the Crepitus seems to have continued, as several reports state that the 'bugs' have returned to the mines.

On a side note: Sergeant Krott, formerly of Alma, is also missing. He was arrested shortly after the liberation of Arulco as a member of Deirdranna's army. Although general consensus was that he'd be aquited of all charges, he escaped after 1 week of imprisonment. His whereabouts are unknown at this time. A guard reported a short conversation at gunpoint. Krott was quoted as saying 'You ungrateful dogs. Dasouza had the right idea'. During his escape 7 guards were killed. Krott is assumed to have joined Carlos in a quest for revenge. Reports suggest he is in charge of Arulco's army.

Micheal Cain in conjunction with Speck has, in an attempt to clear the blemish on their respective organization, issued a huge reward for the identification and neutralization of the traitors through the Intercept International Bountyhunting Agency.

Enrico Chivaldory once again needs your service to liberate Alrulco and eliminate the threat from Traconia.