The Earth Government sends a group dubbed the Large Scale Enterprises of the Central Committee (LCC for short) to Mars to attempt to bring the corporations in line. Unfortunately, its resources are nowhere near as plentiful as those of the corporations, and since those groups already control all the major mining areas, the LCC is having a difficult time producing its resources on its own. More damning still is the fact that the Earth Government has no real access to Armored Core materials or pilots, due to its general aversion to the use of Ravens combined with the fact that the corporations generally don't do business with the Government.
These factors combine to make the LCC little more than a puppet group with no power, until aid comes from a seemingly unlikely source - Balena. This corporate group is also short on resources, but do have access to mining materials and additionally produce Armored Cores as their main business. Additionally, they're eager to find a way to seize power on Mars that doesn't involve relying on the war between Zio Matrix and Emeraude, which could go either way since the two have similar resources. At this time, Balena and the LCC make a joint appeal to the Earth Government for a force of skilled Armored Core pilots to be deployed to Mars to intervene in the Zio-Emeraude War. The Earth Government decides not to recruit Ravens from Nerves Concord (due to its involvement in the Mars conflict), and instead approaches a group of skilled former Ravens to make up its new team - the Frighteners. Leos Klein is selected as the leader of this group, and they are deployed to Mars.
The Frighteners turn out to be the solution to the LCC's problems, as they are successful in restraining the corporate forces of both Zio Matrix and Emeraude. Emeraude's earth headquarters decides not to let this stand, and orders the Mars division to attack the LCC. Unfortunately, Emeraude's Ravens prove to be no match for the Frighteners and are crushed. Upon receiving this information and also learning of their own loss, Zio Matrix's earth headquarters orders its Mars division to stand down, but it refuses and continues its activities, attempting to activate a massive Disorder Unit as their trump card. They fail and are almost completely destroyed along with Emeraude.
At this point, the LCC has successfully put down the major corporations and declares control over all of Mars. In order to reinforce LCC's control, the Earth Government sends a VIP to Mars as the official leader. During the arrival of the VIP, however, the Frighteners suddenly turn on the group and assassinate the top leadership, then attack its major military assets and destroy them.