File 27: Grace's Report



In 1998, Raccoon City was devastated by a massive outbreak caused by a viral leak from the pharmaceutical giant, Umbrella.

The United States government responded by launching a missile strike to wipe out the infected, and erected a blockade to seal off the city.

In 2004, following a court trial, the Umbrella Corporation declared bankruptcy. A complete account of the events was never released.

However, in October 2026, it was discovered that the city had been used as a hub for the production and trafficking of bioweapons. 

This report reveals that the established narrative of the Raccoon City Incident was falsified and elucidates newly discovered truths surrounding the incident.


1968:


To properly understand the truth, we must first
go back to the beginning of it all.

In 1968, Ozwell E. Spencer, James Marcus,  and Edward Ashford founded the Umbrella
Corporation.

Having witnessed the horrors of the Second World War and the dread of the Cold War,  Spencer felt a sense of despair at watching the world repeat the same mistakes. He felt it was his duty to bring about a change to humanity.

As stated in court records following the  Raccoon City incident, his ultimate goal was to bring about the "viral evolution of the human race."

Thus, he relentlessly pursued virus research
through illegal and inhumane means. This fact
remains unchanged.


1970s


From the very beginning of Umbrella, the company faced rapid change and intense  internal strife— most notably, the sharp ideological divide between Spencer and  Marcus.

According to court records, this conflict was
cited as the primary factor leading to the unusual developments which followed.

In 1978, James Marcus developed the T-Virus,
which would go on to become the cause of the subsequent outbreak.


1980s


This is a crucial period for understanding the
basis of what caused the incident and the truth behind the entire case.


Spencer's Influence and ARK's Establishment


Spencer used internal politics to have Marcus demoted, absorbing T-Virus research into a facility under his own control. From then on, Umbrella  began to actively research and develop bioweapons under Spencer's leadership.

The underground facility known as ARK, which was discovered during recent events, originally served as the administrative center of Umbrella's research.

Several documents outlining Spencer's plan for ARK have also been discovered.

Excerpt from confiscated records:
"Long-Term Strategic Review 1980_0422"

ARK-centric Integrated Research Roadmap

Step 1: Concentrated investment into Wesker Project and the T-Virus
Step 2: Establishment of ARK as a central command center
Step 3: Development of Elpis
Step 4: Memory transfer and forced evolution

This is the first recorded instance of a significant keyword—Elpis.


The Connections' Involvement


The following documents regarding Marcus' involvement were also discovered.

Excerpt from confiscated records:
"Receipt of Donation 1986_0138"

Recipient: James Marcus
Sender: F Foundation

Amount: $30,000,000

This document shows a suspicious flow of funds being channeled to Marcus.

Past FBI investigations revealed that the source of the funds—the F Foundation—was just one of the puppet organizations of The Connections.
(The F Foundation no longer exists.)

The Connections is a criminal organization that various government agencies have been sounding the alarm against for years. This illicit group is at the heart of all this.

Evidence suggests that The Connections sought involvement with Umbrella's central operations.

Additional documents belonging to the protégé of Marcus, Brandon Bailey, have been uncovered.

Excerpt from confiscated records:
"Telegraph Log 1988_0996"

Sender: Brandon Bailey
Recipient: F Foundation

Preparations are complete. I think it's time they made contact with me directly, don't you? I await a response.

This indicates that Bailey took over correspondence with The Connections, succeeding Marcus.

Bailey was rumored to be the founder of The Connections, but he may have only been a small cog in the larger machine. We now believe The Connections has had deep roots in the criminal underworld since before the 1980s.

Much about The Connections remains unknown.


Spencer's Purge


In order for Spencer to obtain complete control
over Umbrella, he used force to deal with any
internal opposition and influential adversaries.

A list of these individuals, seemingly prepared
by an associate of Spencer's, was recently
discovered.

Excerpt from confiscated records:
"Reevaluation List"

Following the CEO's reevaluation protocol,
measures will be taken against these individuals:

- Cheryl Moore
- Michael Kramer
- James Marcus
.........
[OMITTED]


1990s


During this period, Umbrella continued to grow and expand through ties with the government. The organization became so large that Spencer could no longer fully control it.

Numerous accidents plagued Umbrella facilities around the world as a result of poor management.

Furthermore, information was being leaked to rival organizations and The Connections due to moles who had infiltrated the company.

Yet despite the circumstances, Spencer was able to thoroughly protect and complete his research at ARK. The research—Elpis.

While most records regarding Elpis were lost with the destruction of ARK, a precious few remain.

Excerpt from confiscated records:
"Spencer's Message 199... [DATA MISSING]"

Tricell, H.C.F., The Family, and Umbrella. Elpis shall bring it all to an end.
[DATA CORRUPTED]

The only information leaked about Elpis was that it had the potential to upset the military balance of the entire world.

However, a strictly managed password known only to Spencer was needed to access it.


What is Elpis?


Elpis is a powerful antiviral drug.

However, this was unknown to those who sought it. The Connections, and other black-market groups, mistakenly thought it to be a powerful bioweapon with the potential to  control human minds.

This confusion likely stemmed from the fierce
competition surrounding bioweapon  development. It was common knowledge that Spencer, the developer of Elpis, aimed for the evolution and control of humanity through viral technology.


Completion of Elpis


Based on data taken from the confiscated records and changes in Spencer's behavior,  we believe Elpis was completed around the mid-1990s.

After this period, the records show a marked
decrease in the number of public statements
from Spencer.

A similar decrease in activity was also observed at the Raccoon City orphanage.

Disturbingly, it is suspected that the children at the orphanage had long been used for  Umbrella experimentation.

While Spencer frequently visited the orphanage, records indicate he stopped in the 1990s.

Furthermore, the orphanage was under the research jurisdiction of William Birkin in the late 90s.

Birkin turned against Spencer, ultimately leading to the leak of the T-Virus.


1998 - The Raccoon City Incident


The T-Virus leaked from the Umbrella research
facility in Raccoon City, causing an  unprecedented outbreak. In response, the government decided to launch a missile strike on the city, under the pretense of containing  the spread.

However, this is where we have been misled.
The missile strike was not launched to prevent
the spread of infection.

A plan was formed to disrupt the relationship
between the government and Umbrella, and shift the blame for all illegal activities onto Spencer. Found records indicate that The Connections lobbied for the missile strike.

Excerpts from confiscated records:
"Access Log: First Assembly Minutes"

ARK has been secured. Commence the missile strike. The blame will fall solely on Spencer. With this, Umbrella will be dismantled and we'll seize their assets.

Their goal was the acquisition of Umbrella assets, particularly the thing they believed would disrupt the world's military balance—Elpis.

Due to Bailey's involvement, The Connections
were aware of Umbrella's inner workings prior
to the Raccoon City Incident. This set them up
to swiftly secure ARK before instructing the
government to carry out the missile strike.


The Umbrella Trials


As is well known, trials were held after the events of the Raccoon City Incident.

Testimony from Raccoon City survivors, along with evidence submitted  by the Global Pharmaceutical Consortium, demonstrated the scope of Umbrella's nefarious activities.

Evidence against Spencer was presented at the trials by his  subordinate, Albert Wesker.

It is now evident that Wesker was linked to Tricell, which in turn had strong ties to The Connections.

Therefore, it is highly likely there was pressure from the government and The Connections during the trials.

In 2004, following the outcome of the trials, Umbrella was forced into bankruptcy.

Just as The Connections and the government intended, Ozwell E.  Spencer was held accountable as CEO and he disappeared from the public eye.


Acquisition of ARK


The Connections and the government seized
ARK during the Raccoon City Incident.

Thereafter, ARK served as a base for the research, development, and distribution of bioweapons.

Documents believed to be transaction lists  have also been seized.

These list Umbrella's competitors, along with
organizations that were previously found guilty of illegal activity.

Unfortunately, most evidence was lost with the collapse of ARK. Recovery efforts continue but success is unlikely.


Proliferation Of Bioterrorism


Following the Raccoon City Incident, weaponized viruses developed by Umbrella were leaked.

Subsequently, instances of bioterrorism utilizing this technology spread around the globe.

In 2013, President Adam Benford was assassinated in a bioterrorist  attack. Intelligence agencies report that the president wished to reveal the full truth of the Raccoon City Incident.

It is possible that President Benford was privy to the facts revealed in  this report.


Spencer's Final Years


Remaining records about Spencer after the
dissolution of Umbrella are scarce, but a new
source of information has recently come to light:
an interview conducted by Alyssa Ashcroft.

Despite being responsible for countless
atrocities, Spencer showed some signs
of remorse in this interview.

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Having lost everything, he sought atonement.

While Elpis is a powerful instrument that can
render viral weapons inert, it also has the
potential as a panacea to be used for good.

It's possible that Spencer's true motivations
behind Elpis were peace and redemption.

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While he remained obsessed with the evolution
of humanity throughout his later years, most
testimonies describe him as nothing but
a senile old man.

Spencer died in 2006 at his secluded estate.
His true intentions behind developing Elpis
will forever remain unknown.