L.O.S. is the codename of Ray, a CIA agent who was in charge of an operation that involved the CIA using drugs to fund the war on terror.
L.O.S. is a very powerful figure who is responsible for a lot of drug related deaths and even dangerous smugglers like Vargas are afraid of him. He is met by Vargas at the scrapyard to hand over the drug shipments, but Michael Cahill, Reese and Carter intercept them and a shootout ensues. L.O.S. is able to overpower Cahill but is knocked out by Reese. He is arrested by Michael Cahill but he boasts that he’ll be out in 14 hours and will come after Cahill and his family. He is released from the police station by Mark Snow.
He expresses his desire to go after Cahill and Carter for arresting him, but Snow says that one can't just kill police officers like that. Snow explains that the Company always takes care of its own, but L.O.S. had always been impulsive and shouldn't have been arrested "behind enemy lines". Snow ushers L.O.S. into an SUV, where an agent places a black hood over his head and restrains him.
His fate is unknown, though he was most likely killed for putting the Company’s cover at risk. (“Blue Code”)
While updating Carter on his search for "the Man in the Suit", Special Agent Donnelly reminds her about L.O.S., stating that he was suspected of having CIA ties but skipped town before he could be charged. (“Many Happy Returns”)
Notes[]
As Kara Stanton leaves them to die from their bomb vests, Reese tells Mark Snow that even if he makes it to a nearby CIA safe house the CIA will consider him compromised and "all that's waiting will be a black hood," indicating that Snow would be killed for being compromised. This further supports the idea that L.O.S. was killed when his cover was blown. (“Dead Reckoning”)