The story begins in the 1960s with three inmates in a New York (state) prison — Earl (Van Peebles), Rocco (Kelly), and Carlito (Hernandez) — controlling their criminal empire within their cell. Upon their release, they all look to control the drug trade in Harlem, which is currently in a power dispute between the Italian Bottolota crime family and black gangsters led by Hollywood Nicky (Combs). Rocco takes them to Artie Bottolota (Young) who at first is reluctant to work with blacks and Puerto Ricos, but who eventually cuts a deal with them in heroin distribution. The friends also meet Artie's son, Artie Jr. Soon, Earl's troubled younger brother Reggie joins them. It does not take long for Reggie to cause trouble; eventually endangering both himself and Carlito's deal with the Bottolotas.
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