Following a series of reports about a murder cult hiding in the Arklay forest, the S.T.A.R.S. Division launched an investigation. This operation would later be known as the Spencer Mansion incident, which took place in the Arklay Mountains in late July 1998. The aftermath of the incident heightened fear in Raccoon City to unprecedented levels. In the weeks that ensued, the S.T.A.R.S. division was disbanded while they were looking into the Umbrella Pharmaceuticals, which faced allegations of conducting illegal experiments involving zombies and other creatures. Reports of missing tourists and residents only intensified the already fraught atmosphere. Rumors of corruption, bribery, and even more heinous crimes circulated throughout the city. The Raccoon Police Department established a new SWAT unit, comprised mostly of inexperienced officers, with few seasoned members to compensate for the absence of the S.T.A.R.S. division. To complicate matters further, a fugitive, dubbed the "Arklay Butcher" by the media, had escaped during a transfer and was now on the loose. Even amid these distressing developments, Raccoon City continued to experience strange occurrences, hinting at darker mysteries and haunting tales of those ensnared in the nightmare.