Our plan worked as designed. After speaking with a representative of the Fifth Column, we managed to secure the services of one general Karl Karloff - an old foe of "Xanatos". Karloff was successful in defeating the subject, and would have carried out phase two if it wasn't for the timely intervention of "Lord Morcalivan". We are still unsure of Subject: Lord Morcalivan's intentions in Paragon, and he remains a highly dangerous rogue - one to be removed if at all possible.
Morcalivan was able to rescue the subject, who then sought aid in three other heroes: Sable Phoenix, Red Tide, and Red Wizard. All three of these heroes are considered high threats, and Sable Phoenix (pictured) is believed to have links to the Bone Squad.
Mr Karloff is currently residing in the paragon Ziggurat, and it is only so long until our plants can remove him. He is no longer needed and must be silenced.
On another note, the subject verbally expressed his disdain towards how: "Death follows [him] like a shroud", and even mentioned the possibility of retiring. While this has no bearing on Crey Industries, it is good for business, and should be encouraged if at all possible.