After the amnesiac Dragon was first found, Fred's cousin Frank arranged for Dragon to work at Fred's Warehouse. Dragon was content and well suited to the work, and was given an apartment on-site to live in.
Frank, however, was intent on recruiting Dragon into the Chicago Police Department. Frank arranged so that the Vicious Circle would attack Fred's business, hopefully convincing Dragon that he would be helping greatly to use his powers to combat criminals. Unfortunately, the attack resulted in Fred's death in an explosion, which did convince Dragon to join the police force.
Due to Fred's death, the plan initially backfired, as The Vicious Circle was able to blackmail Frank into keeping Dragon away from their operations. It wasn't until the criminals attacked Frank and his wife directly that he finally confessed to Dragon his involvement in his cousin's death.