So he has no background in KOTOR 1... how do you know this?
As for his role as villain, I think he's the new Calo Nord/Darth Bandon type character.
To defeat him, you must use Force Feel to get through his pre-existant pain.
How do I know? Well it's pretty much an inference from the Devs statement about no plot twists or revelations, and I think that another character from KotOR being a revelation, unless that character was already dark...but I think OE wouldn't include another KotOR character, as that would seem uninspired...
I seriously doubt he will be like Bandon or Malak though...I think he's the leader of the assassin group, but I think he sends them(assassins) until you finally confront him yourself...
Just remember, this is speculation...