As a result of this memorandum Dulles established a ZR/RIFLE unit named Operation 40, from the "Group of 40" of the National Security Council group that followed Cuba. The group was presided over by then-Vice President Richard M. Nixon and included Admiral Arleigh Burke, Livingston Merchant of the State Department, National Security Adviser Gordon Gray, and Allen Dulles of the CIA.
Tracy Barnes functioned as operating office of the Cuban Task Force. He called a meeting on 18 January 1960, in his temporary office near the Lincoln Memorial. Those attending included David Atlee Phillips, Jacob 'Jake' Esterline, E. Howard Hunt, and Frank Bender (an alias of Gerry Droller), all of the CIA. Barnes, Phillips, Esterline, Hunt, David Sanchez Morales and others had previously worked together in the 1954 overthrow of Jacobo Arbenz in Guatemala, organized by the CIA under the code-name Operation PBSUCCESS.
On 17 March 1960, President Eisenhower signed a National Security Council directive on the anti-Cuban covert action program authorizing the CIA to organize, train, and equip Cuban refugees as a guerilla force to overthrow Castro.
The group recruited former Batista-regime intelligence officers and mob henchmen like Eladio del Valle and Rolando Masferrer, soldiers of fortune like Frank Sturgis, and CIA case officers like Col. William Bishop and David Sanchez Morales, who managed teams of assassins.
The individuals who comprised Operation 40 had been selected in Miami, Florida by Jose Sanjenis Perdomo, former Chief of Police during Cuban President Carlos Prio's regime. Operation 40 had 86 employees in 1961, of which 37 were trained as case officers. These included: Frank Sturgis, Felix Rodriguez, Antonio Veciana, Luis Posada Carriles, Orlando Bosch, Rafael 'Chi Chi' Quintero, Roland Masferrer, Eladio del Valle, Guillermo Novo, Carlos Bringuier, Eugenio Martinez ('Musculito'), Antonio Cuesta, Hermino Diaz Garcia, Juan Manuel Salvat, Ricardo Morales Navarrete, Isidro Borjas, Virgilio Paz Romero, Jose Dionisio Suarez, Felipe Rivero, Gaspar 'Gasparito' Jimenez Escobedo, Nazario Sargent, Pedro Luis Diaz Lanz, Jose Basulto, Alvin Ross, Ricardo Morales Navarrete, Juan Manuel Salvat, (Cuban-American) Bernard Barker, and Paulino Sierra. Barry Seal may have flown for Op 40.
A letter dated 8 February 1961 signed by Felipe Rodriguez of the CIA, lists the leaders and men of "la COMPANIA DE INTELIGENCIA Y RECONOCIMIENTO (Operacion-40)". This letter also has names and information as to member status of death, prison, of various Bay of Pigs participant. (Letter obtained from Brigade Headquarters.)
Among the names listed are: Jose Manuel Alvarez Pascual, Rafael D. Arce Godinez, Enrique Jose Casares Blanco, Miguel Cossio (Cosio Rosales), Arsenio Felipe De Diego Aday, Carlos Alberto De Diego Aday, Alberto J. Farinas Alzugaray (Alzagaray), Jorge Luis Fernandez Lopez Callejas, Federico M. Flaquer (Flagler) Carballar, Mario Fuentes Macias, Héctor A. de Lamar Maza, Mario Luis de Lamar Maza, Vicente Leon Leon, Fernando J. Milanes Morales, Ramon Eduardo Pages Morales, Carlos Pascual Noriega, Eddy Perez,Ramon Perez Veitia (Veytia), Ramon Pla Perez, Pedro Salvador Puig Gomez, Jose Manuel ('Manolo') Reboso (Reposo) Bello, Felipe Rodriguez, and Rogelio ZAYAS Bazan Loret de Mola.
The group played a major role in the Bay of Pigs invasion. "The first news that we have of Operation 40 is a statement made by a mercenary of the Bay of Pigs who was the chief of military intelligence of the invading brigade and whose name was Jose Raúl de Varona Gonzalez," writes Escalante. "In his statement this man said the following: in the month of March, 1961, around the seventh, Mr. Vicente Leon arrived at the base in Guatemala at the head of some 53 men saying that he had been sent by the office of Mr. Joaquin Sanjenis, Chief of Civilian Intelligence, with a mission he said was called Operation 40. It was a special group that didn't have anything to do with the brigade and which would go in the rearguard occupying towns and cities. His prime mission was to take over the files of intelligence agencies, public buildings, banks, industries, and capture the heads and leaders in all of the cities and interrogate them. Interrogate them in his own way".
In a 9 June 1961 memorandum to Richard Goodwin, historian and Kennedy advisor Arthur Schlesinger, Jr. wrote: "Sam Halper, who has been the New York Times correspondent in Havana and more recently in Miami, came to see me last week. He has excellent contracts among the Cuban exiles.... Halper says that CIA set up something called Operation 40 under the direction of a man named (as he recalled) Captain Luis Sanjenis, who was also chief of intelligence.... But the CIA agent in charge, a man known as Felix, trained the members of the group in methods of third degree interrogation, torture and general terrorism. The liberal Cuban exiles believe that the real purpose of Operation 40 was to 'kill Communists' and, after eliminating hard-core Fidelistas, to go on to eliminate first the followers of Ray, then the followers of Varona and finally to set up a right wing dictatorship, presumably under Manuel Artime.... The exiles believe that all these things had CIA approval.... Nice fellows."