A surge in drug activity on the streets preceded the arrival of Lorenzo Alcazar, Luis Alcazar's older brother, in Port Charles. Wanting to move drugs through Sonny's territory, Alcazar kidnapped and beat Sonny in an attempt to get Sonny to do business with him. He then introduced himself to Ric Lansing, offering him Sonny's territory when he took Sonny down. Although tempted, Ric declined. Jason worked out a plan to set up Alcazar and get him arrested for drug-related charges so that Lorenzo would free Sonny. However, Alcazar was able to bribe his way out of the charges.
When Alcazar figured out that Ric had kidnapped Carly, he blackmailed Ric into becoming his partner. Alcazar visited Carly in the secret room and she repeatedly tried to get him to rescue her. He planted evidence to make Sonny think that Carly had been taken to South America. When Carly wanted to know why he partnered with Ric, Alcazar confessed that he held Sonny responsible for his brother's death. He was suspicious when it appeared that Sonny had given up searching for Carly and taken up with Faith Rosco instead.
Alcazar told Faith that he knew she had made a deal with the Feds to stay out of jail and offered to make another one with her to get info on Sonny. She initially turned him down, but Sonny later ordered her to get close to Alcazar in order to keep their deal with the Feds. Alcazar realized that Ric was in over his head and that Sonny would be a better business partner. He tried to blackmail Sonny into allowing him to land a shipment of drugs in exchange for info on where Carly was being held.
Jason discovered a photo of Carly in Alcazar's apartment, which helped them figure out that Carly was still in Port Charles. After deciding that he no longer needed Ric, Alcazar made plans to rescue Carly. But Ric found out and fixed it so that Alcazar no longer had access to where Carly was being held. Faith continued trying to cozy up to Alcazar, but got disgusted when he wanted to sleep with her. When Ric's wife, Elizabeth, discovered Carly and the secret room, Alcazar told Ric he needed to kill Elizabeth before she gave him up to the cops.
When Ric had an attack of guilty conscience and decided to let Carly go, Alcazar snatched her and then used her as a bargaining chip with Sonny in order to move drugs through Sonny's territory. Wanting his wife back, Sonny agreed to Alcazar's deal. Alcazar treated Carly a lot better than Ric did, allowing her to roam the yacht and call home whenever she liked. He also allowed Sonny to visit her. Sonny and Carly were happy to be reunited, but Alcazar kept their visit short.
Alcazar and Carly seemed to bond while he taught her backgammon and she asked him about his past, including the woman he had loved who was killed in South America. Alcazar admired Carly's strong will and perseverance in continually trying to escape and fighting to keep her baby safe. Still trying to secretly thwart Alcazar's attempts to bring drugs into Port Charles, Sonny had Faith buy up Alcazar's drug shipment before it could reach the streets. When Alcazar figured out that Sonny had planted a homing device during one of his visits with Carly, he put Carly on a plane to move her to another location. She went into premature labor and Alcazar was forced to get her medical attention. The doctors wanted to perform a C-section, but Carly begged Alcazar not to let them and he finally relented.
Sonny and Jason were able to rescue Carly from the clinic with Ric's help. But Alcazar discovered that Courtney followed them to South America, and he took her hostage. Alcazar then offered to trade Courtney for Carly. Sonny refused, realizing that Alcazar had feelings for Carly. Sonny had Faith make another drug deal with Alcazar and Jason planted a homing device in the money to try to find out where Courtney was being held. Back in Port Charles, Alcazar nearly killed Ric, but Sonny stopped him. Courtney escaped into the ocean after a storm and ended up in a medical clinic. Posing as Courtney's fiancé, Alcazar nearly regained Courtney as a hostage, but Jason rescued her in time. However, she lost their unborn baby and blamed Alcazar for forcing her to escape from him.
After Carly and Sonny reunited, Alcazar continued to keep an eye on Carly. When Sonny discovered Alcazar's men following Carly around, he told Alcazar to stay away from his wife. But Alcazar made sure he kept running into Carly and helped her out of a few jams, including covering up Courtney's involvement in the hit-and-run accident of Elizabeth Webber. Carly also saved Alcazar's life when Stefan strangled him in an alley to wipe out the debt the Cassadines owed Alcazar. Alcazar was slowly driving a wedge between Sonny and Carly. But it wasn't fast enough for Alcazar.
Alcazar found out the circumstances surrounding Sonny's first wife, Lily's, death. He hired a woman to be surgically altered to look just like Lily and then haunt Sonny and make him believe he was going crazy. Alcazar had the woman tell Sonny that he was endangering his family's lives by living with them. Sonny believed it to the point of buying Carly her dream house and telling her that he was going to divorce her and she would live in the house with their kids. Carly was furious. When she went to look at the house one stormy night, she fell down the stairs there and went into labor. Fearing that Sonny had hurt Carly, Alcazar went to find Carly and got Courtney to tell him where to look. When he got to the house, Carly told him he was going to have to deliver her baby.
After Courtney was taken to the hospital following her car accident, she told Sonny where Carly was and he took off, fearful that Alcazar had found Carly first. When Sonny arrived at the house, he heard Carly screaming inside and thought Alcazar was hurting her. So he kicked in the door and shot at Alcazar. The bullet went through Alcazar and into Carly's head. Sonny helped Carly finish delivering their child and then she passed out. Alcazar managed to drag himself into the woods surrounding the property where his hired look-a-like discovered him. While Alcazar recovered in the hospital, he sat by Carly's bed as she lay in a coma due to her head wound. Sonny didn't like it and ordered him to stay away, but the doctors said that Carly seemed to respond to Alcazar's voice.
When Carly finally woke up, she was glad to see Alcazar standing by her bed. During her coma, Carly had dreamed of an entire life with Alcazar as her husband and Sonny as the mobster trying to break them apart because he wanted Carly for himself. Her feelings in the dream were so strong they were still with her when she awoke from her coma and covered up any feelings she had for Sonny and her kids before her coma. Alcazar told her that he loved her, making her more confused about what she truly felt for either Alcazar or Sonny.
Alcazar's niece, Sage, showed up around then. She had come to town intent on killing her father's murderer, but Dillon managed to stop her before she could. Sage convinced her uncle to let her stay in town, and Alcazar hired Dillon as her bodyguard. Having pawned Sage off on Dillon to keep her out of trouble, Alcazar turned to making sure that Carly didn't find out that he had been the one behind "Lily's haunting" of Sonny. But the look-a-like was in his apartment when Carly went to see him, and Carly realized what had happened. Carly slapped Alcazar before going home to Sonny to work on rebuilding her marriage.
When Sonny took the family to his island, Carly finally told him about her dream and her feelings for Alcazar. Hurt and angry, Sonny took off for home, where he intended to kill Alcazar. Afraid that Sonny was going to do something stupid, Carly called Alcazar to tell him to get out of town. Instead, Alcazar contacted the cops and made sure that Sonny found him walking out of his apartment building. Sonny shot at him as Carly ran onto the scene. Sonny then flagged down a passing vehicle and made the driver get him out of there.
Alcazar's plan of enticing Sonny to commit attempted murder worked, but Carly fled the country with Sonny and their kids to protect Sonny. Sonny later returned to stand trial. Alcazar wasn't happy when the jury found Sonny not guilty, and Jason thwarted his plan to have Sonny gunned down outside the courtroom. After the trial, Carly was in the midst of reading Alcazar the riot act when she collapsed from a blinding head pain. When she awoke, her feelings for Sonny had returned.
Alcazar had the Haunted Star casino robbed on opening night and, during the event, he got Carly alone and kissed her. Carly couldn't forget the kiss of the masked man and began having erotic dreams. She was horrified to discover they were about Alcazar. Trying to protect Carly and her marriage, Jason kidnapped Alcazar. He put him in the Panic Room at Ric's old house, where Carly discovered him. She nearly killed him, but later she came back and nearly made love to him before he stopped her, unwilling to take advantage of her condition.
Desperate to get Alcazar out of her head, Carly checked herself into a mental institution. When Faith paid the doctors to drug Carly, Alcazar broke in and rescued her. He took her back to his safe house, where she tried to seduce him. But when he realized that Faith had tried to brainwash Carly into loving him, he refused to take advantage of her condition and was saddened to see the pain he'd put her through. He vowed to let her go in order to protect her from further pain. They were sharing a goodbye kiss when Sonny walked in and jumped to the wrong conclusion. Carly ran out to find Sonny, but when she finally did, he was making love to Sam. So Carly ran back to Lorenzo and they made love for the first time.
When a hurt and angry Sonny wouldn't let Carly see their kids, Lorenzo vowed to help her fight for custody. Alcazar confronted Sonny in a stairwell at the hotel and they were in the midst of a physical fight when a fire broke out. Each of them saved the other's life before they separated to find a way out. Alcazar ran into Sage, Dillon, Georgie, and Tom and got them all to the Versailles Room. When he learned that Carly was somewhere in the hotel, he tried to leave to find her. But Dillon knocked him out before he could. Sonny and Carly both made it to the room and were off talking alone when the floor underneath them collapsed. Alcazar found them a few floors down and watched as Sonny cradled an unconscious Carly.
Carly nearly moved in with Alcazar following the fire, but decided it would hurt her case. While pretending to go legitimate for Carly's sake, Alcazar was secretly plotting to make Sonny look bad. The day the judge was ready to hand down his decision in the custody case, an explosion outside the courtroom blew out the windows. Alcazar got some of the glass in his eyes and was blinded. Carly was by his side as he recovered, despite the fact that she had planned to end things with him right after the custody hearing.
Carly ignored Jason and Sonny when they insisted that Alcazar was behind the bomb. But she was proven wrong when she discovered a bloody piece of paper that had belonged to the bomber. The phone number written on it was Alcazar's. Alcazar had been struggling to keep the bomber under control and the bomber had broken into the house where Sonny shot and killed him. Furious to learn the truth, Carly handcuffed Alcazar in her basement. Carly told Sonny that she knew that Alcazar had hired the bomber.
Sonny called Jason and ordered him to find and kill Alcazar. But before he could, Courtney knocked Jason out and helped Alcazar flee. Furious, Sonny went after Alcazar himself and Carly found him confronting Alcazar in Alcazar's apartment. Sonny shoved the gun into her hand and told her to prove to him that she was done with Alcazar by killing him. The confrontation came to halt when the cops showed up, having been tipped off by Courtney.
After he decided to remain in Port Charles, Alcazar used a front to purchase Courtney's waterfront property, and taunted Jason with the fact that he owned the area Sonny and Jason were shipping through. When Michael faked his kidnapping in order to bring Sonny and Carly together, Alcazar and Jason discovered Michael had fallen into a well and they pulled him out together. Carly was grateful to Alcazar for rescuing Michael, but insisted on focusing on her kids' needs and not her own from that point on. To do this, she moved back in with Sonny and her children and pushed Alcazar away. Alcazar tried to talk her into standing up to Sonny for once, but she insisted she was only thinking of her children.
Frustrated, Alcazar went to a small cottage church to pray. There, he discovered Nikolas Cassadine, alive and well, when everyone believed him dead. But Nikolas introduced himself as Connor Bishop and Alcazar could tell that he had amnesia. Alcazar went along with it and inspired him to let the past go and focus on what he knew in that moment. Alcazar also offered him a job.
Later on, Alcazar met Connor's wife, Mary. Mary knew right away that Alcazar knew the truth and begged him not to tell. For reasons of his own, Alcazar agreed. At Tracy's engagement party, Alcazar learned from Sage that she had conspired with Tracy to obtain naked photos of Georgie in order to make it look like Georgie was selling them on the Internet and to keep her from Dillon. Alcazar berated Tracy, and then promised Sage that he would back a new singing career for her with Ned's record company.
Lorenzo had just allied himself with Tracy Quartermaine and ELQ when he learned that Tracy was instrumental in Sage losing her love, Dillon, forever. Eager to teach Tracy a lesson, Lorenzo agreed to partner with Tracy's vengeful son, Ned. Ned was restarting his record label, L&B, and needed a wealthy backer. Lorenzo agreed to put money behind L&B, as long as Ned allowed Sage to audition. Sage blew Ned away with her vocal talents, and Ned quickly put Dillon to work directing Sage's debut music video. But a jealous Georgie Jones played an innocent prank on Sage at the studio, which landed Sage in the hospital with a knee injury, and with her vocal chords so damaged that she might never sing again.
Lorenzo withdrew his finances from L&B, while Sage vowed to take Dillon away from Georgie because Georgie ruined Sage's chances of being a singer. Sage fortunately recovered and renewed her quest to be a star. Meanwhile, L&B received a boost when the company's founding "L," Lois Cerullo, returned to Port Charles and rejoined the company she started nearly ten years earlier. Lois met with Lorenzo, and when she realized he was a "gangster," she refused to accept his money as financial support for her company. Lois did think Sage had potential, but wanted her to achieve her dreams on her own, without Lorenzo's assistance. The eccentric Lois charmed Lorenzo, but Lois wanted no part of Lorenzo. Lois started to develop an attraction to Lorenzo, but Lois fought against it, especially after Lois's daughter, Brook Lynn, voiced her objections.
Lorenzo befriended recluse, Mary Bishop, when he sympathized with her because of her grief over losing the love of her life, husband Connor. Mary was so grief-stricken that she convinced an amnesiac Nikolas Cassadine that he was Connor, and Mary relied on Lorenzo to keep "Connor" employed and hidden from Nikolas' grieving paramour, Emily Quartermaine.
Lorenzo was devastated when Mary Bishop, who had mistaken Sage for Emily Quartermaine, murdered Sage. Lorenzo tried to avenge Sage's death by going after Mary and Nikolas, but Lois' support helped Lorenzo see that revenge wouldn't bring Sage back.
Lorenzo was seduced by the prospect of winning Carly back when he met John Durant, Carly's biological father, and federal prosecutor, who was beginning to erode Carly's marriage to Sonny. Durant was using the knowledge of Lorenzo's involvement in Mary's death to blackmail Lorenzo into maneuvering Sonny into incriminating himself, so that Durant could send Sonny to prison. Lorenzo turned on Durant and tipped Sonny off, in the secret hope that Sonny and Durant would cancel each other out and leave Carly available for Lorenzo. Lorenzo then hired a hit woman, Lana, to kill Durant and frame Jason for the crime, and it nearly tore apart Carly's relationships with Sonny and Jason, but the frame-up was soon exposed.
Finally giving up on the idea of being with Carly, Lorenzo was starting to see his feelings for Lois were real, and hoped that Lois would open up to the possibility of having a future with him. Their affair didn't last. Lois would eventually realize that Carly would always come first with Lorenzo. After the truth was revealed that Sonny was Kristina's father and that Carly had known and kept the secret from him, Sonny ended their marriage. Carly dated Steven for a short time, but when her sons were kidnapped, their relationship ended and Lorenzo stepped in to offer Carly support and help her find her children.
After she was reunited with both of her sons and the kidnapper was revealed to be none other than AJ Quartermaine, who was murdered in the hospital after a serious fall, Carly became one of the prime suspects. Lorenzo stood by Carly's side, defending her and helping her get out of jail. On the day of Courtney's wedding to Jasper Jacks, Lorenzo's fondest wish was granted when Carly asked him to marry her. Initially he was worried that she was only asking him to get back at Sonny, but Carly convinced him that she loved him. They eloped almost immediately. Upon their return, Lorenzo surprised Carly with her dream house, complete with stables. He was also able to secure Carly a position as the head of General Hospital's Charitable Endowment.
The marriage would not last. Carly was suffering a breakdown and spiraling out of control. Eventually she would be committed to Roselawn for a period of time. After leaving the sanitarium, Carly was determined to start a new life and it did not include Lorenzo Alcazar. Lorenzo was forced to say goodbye to Carly for the last time.
Lorenzo's life took an unexpected turn when he learned that he had a son, Diego. Diego was a troubled youth who was taken in by Courtney when she opened her home up to foster children. Forming friendships in Port Charles prompted Diego to learn more about his past. His search led him to his mother, a recovering addict who dated Lorenzo years earlier and disappeared without telling him about the baby. Since Diego was nearly a grown man, Lorenzo's relationship with his son was complicated. Diego wanted to be a part of the mob world, while Lorenzo wanted better for him. That was not to be.
Diego snapped after finding his dead cousin's diary. Sage wrote about how tormented she'd been by the teens that Diego called friends. Wanting to avenge his cousin, Diego started slipping certain women a date rape drug and taking compromising pictures of them. When Lorenzo learned what his son had done, he was horrified. He blamed himself, especially after Diego was sent off to prison. Things were not completely bleak for Lorenzo, though. Lorenzo had fallen in love with Skye Quartermaine. They were shocked to learn that Skye was expecting. For years, Skye believed that she was unable to have children. Sadly, tragedy was on the horizon. Shortly after Diego was released from prison, he insisted on going into the family business. Lorenzo tried to protect him, but he couldn't. Sam McCall killed Diego during a shootout.
Skye was determined to save her daughter from that kind of violence. She took off and tried to disappear, but Lorenzo was always close on her heels. She gave birth to a baby girl with Luke, Robert, and Lorenzo as nursemaids. Lila Rae made Skye realize that she didn't have the right to keep Lorenzo and Lila from knowing each other. Skye and Lorenzo tried to build a family, but happiness remained elusive.
Lorenzo devised a plot to boldly kill Sonny. Unfortunately it was Lorenzo who paid the price when Sonny got the jump on him and managed to shoot Lorenzo in the head before Lorenzo could get off a shot. Surprisingly, Lorenzo pulled though, but with some temporary memory loss. That proved to be unfortunate, since Lorenzo had set up an international arms deal to take place in Port Charles. Still recovering from the gunshot wound, Lorenzo tried to hold up his end the bargain, but it was beyond his control. His injuries developed complications and Lorenzo fell into a coma. Without Lorenzo, the deal fell apart and, as a result, James Craig, a.k.a Jerry Jacks, took the Metro Court hostage.
Lorenzo recovered and, for a while, pretended to have short-term amnesia in part to avoid legal responsibility. Skye was furious when she realized she'd been duped. Lorenzo and Skye continue to be at odds. In order to control Skye, Lorenzo arranged for Lila Rae to be secreted away during the night and hidden from Skye. Skye saw a side of Lorenzo that terrified her. She quickly struck a bargain with Sonny and Jason. She would help them kill Lorenzo if they waited long enough for her to get Lila Rae back. She knew that if Jason killed Lorenzo before Lorenzo brought Lila Rae home, she would never see her daughter again.
Within weeks, Lorenzo trusted Skye enough to bring their daughter home. The moment Skye had Lila in her arms she let Sonny and Jason know. In a chilling last scene, Skye unlocked the patio door to allow Jason to slip in. She then calmly walked to Lila's nursery and joined Lorenzo. They talked about their plans to leave Port Charles, and then Lorenzo stepped out of the room. Skye gently picked up her daughter and walked to the rocking chair, softly singing to her daughter. In the background viewers heard Lorenzo say, "Morgan," followed by two muffled shots. Seconds later there was a loud thud as Lorenzo's body hit the floor.