The Ambush at the Abandoned Warehouse was an undercover Homeland Security sting operation organized in order to track down and capture the men who were trying to hunting Frank Castle down, by baiting them with false information regarding Castle's whereabouts.
Acknowledging that someone located bug in her office, Dinah Madani and Sam Stein acted out a pretend conversation, in which they put out a false information that Frank Castle is going to buy ammunition from Jack DeLeon and meet his at old warehouse. Later, she and Stein relayed the plot to other participants of the plan on paper.
Rawlins passed the information to Billy Russo. Russo met ex-Anvil agents Mike Bashille, Jim Pruitt, Spencer Geiger and Tom Weems outside of the city. Russo offered them a mission to hunt down and assassinate Castle which would be top secret and completely deniable for them. Russo offered them checks of fifty thousand dollars in exchange for their work, which they all agreed.
Homeland Security agents led by Dinah Madani and Sam Stein holed up at the Abandoned Warehouse and waited for their targets, while Billy Russo's team was preparing themselves for a firefight. Covered their faces with masks, Anvil agents stormed the warehouse and awaited Frank Castle's arrival. As the team made their way into a large hallway, they were then suddenly surrounded by Homeland Security agents who ordered them to drop their weapons and surrender. Russo ignored the order and fired upon one of the agents, which killed him instantly, resulting in a violent firefight breaking out. Russo's team quickly found themselves outgunned and outmatched as the agents came at them from all sides, killing Jim Pruitt and Mike Bashille. As Russo struggled to see a way out, he pushed Spencer Geiger into the line of fire as he then made a sudden run for freedom.
Russo charged down the stairs followed by Tom Weems, who was then wounded to his legs. As Weems begged for help, Russo instead killed him to ensure Weems could not give Homeland his name if he had been captured. Russo made his own desperate run for freedom while he still could, followed closely by Madani. As another agent almost spotted him, so Russo killed him with a single shot and left.
Before Russo could get out, he was approached by Stein who held Russo at gunpoint, ordering him to drop his weapon and get down onto his knees. Russo did as instructed and allowed Stein. Stein removed his mask and briefly paused in surprise at seeing who was to blame. But Russo used his brief pause to his own advantage by using his wrist blade to stab Stein multiple times into the throat before leaving him to bleed out.
- "Do you know that I've been to seventeen funerals? Friends, guys that I served with. You think I don't know what this feeling is like?"
"Were any of them your fault?"
"If I wanted to go that way. Sure. Maybe if I'd shot this guy, or stopped that guy. Been there a second sooner, stayed a second later. So maybe."
- ―Billy Russo and Dinah Madani
Russo escaped the crime scene, letting Madani find Stein chocking on his own blood. Stein wasn't able to tell his partner that it was Russo, dying in her arms. Billy returned to take a traumatized Madani to her residence and comforted her and bathed the blood off her.
Next day, Madani suspected files of mercenaries killed in the ambush and learned about they worked for Anvil. Russo denied all affiliation to them but while incident in Royal Hospitality she guessed about Russo's guilt.