I know you probably all figured this out light years ahead of me but after watching episode 3 there's no doubt in my mind that he was or is part of Neiro's terrorist group. In the background in the beginning his face comes on next to hers as being wanted.
And who do you all think is that green thing that's been helping Kaiba out? I suspect it may be Neiro herself but that's just a wild guess. I don't even remember when it first showed up or where it came from. Anybody remember?