In 1972, Barnes formed The Council, a seven-man African-American organized crime syndicate that controlled a significant part of the heroin trade in the Harlem area of New York City.
A good student in his youth, Barnes left home early to escape his abusive alcoholic father, turning to drug dealing for income.
[4][citation needed] Gallo wanted to have a greater presence in the Harlem heroin market, but did not have any personnel to deal in the predominantly African-American areas.
The Council was modelled after the Italian-American Mafia families, where it settled disputes among the criminals, and handled distribution problems and other drug trade related issues.
According to Drug Enforcement Administration (DEA) records, Barnes' operation in 1976 consisted of seven lieutenants, who each controlled a dozen mid-level distributors, who in turn supplied upwards of 40 street level dealers each.
The DEA eventually discovered the true ownership of the companies and seized the cars, including a Bentley, a Citroën SM, a Maserati, a Mercedes-Benz, a yellow Volvo, and several Cadillacs, Lincoln Continentals, and Ford Thunderbirds.
A New York Times article estimated Barnes purchased hundreds of tailor-made suits, Italian shoes, coats, and jewelry, which alone was valued at over $7 million.
[6][7][8] On June 5, 1977, The New York Times Magazine released an article titled "Mr. Untouchable", featuring Barnes posing on the front cover.
[citation needed] In response to Barnes' apparent confidence in his own invulnerability, President Jimmy Carter ordered the Justice Department to intensify its efforts to prosecute him.