He can be found in the Fort Hades neighborhood of Port Oakes.
In 1717, these unfortunate French soldiers were slain by Captain Blackbeard and his bloodthirsty crew. They haunt the old fort now, slaying all those who approach their spectral domain and turning them into Night Haunts. The more powerful of the their victims become Night Terrors.
- Red Terror's Spectral Pirates profile for a list of his powers