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Phaen was a lowly wizard of the Hosttower. He committed some fatal mistake, which he never shared with anyone, and was immediately cast out of the Brotherhood. He lost his robe and he began wearing a "Robe of Rags", which showed his lowly rank in the Hosttower. He traveled to Icewind Dale and eventually joined the Legion of the Chimera. He summoned goblins into the town of Targos to raid the town. He was killed by adventurers who eventually saved the town and all of the Ten Towns.
Later events cast doubt on his story of expulsion from the Brotherhood. Beastmaster Harshom, who heavily implies that he is a current member of the Brotherhood, claims that Phaen answered to him.
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