Could Fandaniel have been controlling the body of King Theodoric and that's why the mad king was so crazy? He's the only Ascian whose personality pretty much meshes with Theodoric's and his love for money and chaos could explain why Theodric executed his entire family and hoarded all their riches.
Edit: Lol, sorry for the spelling mistake, Theodric! I meant "Theodoric", not Theodric, lol! Thanks for pointing that out, WhiteArchmage. xD
