In 1992, the Ballas planned to assassinate Sweet to deprieve the Families of their leader and take over their territories. They used a Sabre to perform a drive-by shooting on The Johnson House. However, instead of Sweet, the Ballas killed his mother, Beverly. Sweet phoned Carl to inform him of Beverly's death, and Carl agreed to return to Los Santos for the funeral.
Carl arrives at the airport and takes a taxi back to his mother's house. However, he is arrested en route. The three police officers that arrest Carl were Frank Tenpenny, Eddie Pulaski and Jimmy Hernandez of the C.R.A.S.H. police unit, a corrupt team of police. C.R.A.S.H. intend to frame Carl for the murder of Officer Ralph Pendelbury and warn Carl that they will be watching him, before throwing him out of the car in Jefferson. Carl makes his way to his mother's house, and meets Big Smoke, one of the leading members of the gang and Sweet's friend. They drive to the funeral and meet Sweet, Ryder and Kendl. Sweet is displeased with Carl's return, claiming that Carl "ran away". After escaping a Ballas drive-by (which destroys Smoke's car), they race back to Grove Street. Seeing the state of the gang, Carl decides to stay and help get the gang back on its feet.
Carl begins working with Sweet, Smoke, Ryder and OG Loc to strengthen the gang again by clearing the hood of crack dealers, buying weapons from Emmet, spraying enemy gang tags and performing drive-bys in Ballas territory. After this, CJ is introduced to Cesar Vialpando, Kendl's boyfriend and leader of the Hispanic gang Varrios Los Aztecas (enemies of the Vagos). Despite a rocky start, both men eventually become good friends and allies. Carl also works with Ryder by stealing weapons for the gang. Attacking enemy gangs with Big Smoke, and assisting OG Loc with his upcoming rapping career. Officer Tenpenny re-appears, ordering Carl to kill some Vagos and torch a house and interrupt a meeting between some Ballas and Russians, before killing them.
Carl helps the gang resist an attack from Ballas and keep control of Ganton, leading Sweet to regain some trust in Carl. Carl and Sweet successfully attack and take over Glen Park, Ballas territory. They gain revenge for their mother's murder by assassinating all the Ballas OGs, including Kane, at the cemetery. Carl takes over more territory for the Families, weakening their enemies, and also tries with Sweet, Smoke and Ryder to reunite the three sets of the Families, though they are ambushed by the police and escape after a long chase.
Carl's respect is upgraded, and Sweet decides to regain control of Los Santos. He assembles an army of Grove Street members and organises a gang war with the Ballas under the Mulholland Intersection. At the same time, Cesar phones Carl and informs him to meet him quickly, because he has something important to show Carl. Carl meets Cesar in Verdant Bluffs, where they witness Ryder, Big Smoke, C.R.A.S.H. and some Ballas exiting a garage containing a green Sabre, the same car used in the drive-by that killed Beverly Johnson. After witnessing this, Carl realises that Sweet is walking into a trap, and quickly drives to the parking lot under the Mulholland Intersection to save his brother. When he arrives there, Sweet is heavily injured, but still alive. Sweet orders Carl to leave, but Carl refuses and kills all the remaining Ballas. The police arrive and arrest both Sweet and Carl. Sweet is taken to a prison hospital, while Carl is taken out of Los Santos by C.R.A.S.H. and taken to Angel Pine in Whetstone.
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