Okay, the villain's placeholder name for now is Dr. Pyrex (Fireking, if you will...).
He works at (actually owns) a top-of-the-line smallish hospital that specializes in fire-related injuries (not a coincidence). Unknown to the general public, he himself creates most of his patients.
Here's how: he is actively searching for pyrokinetic dynamics, and is researching their DNA so that he can hopefully create a virus that will give non-dynamics pyrokinetic abilities. The way he does this is by releasing a prototype virus that activates latent dynamics (hopefully) in places where he can track all those who have been infected to see if there are any results. Non-dynamics are totally unaffected by the virus.
Latent dynamics, however, will be effected in some way or another. However, the virus is only a prototype, so it doesn't exactly work like it's supposed to. (And there are different degrees of ability within the ranks of dynamics anyway. Does this work with our view of dynamics?)
Anyway, the signs of being effected by the virus are usually violent fires breaking out randomly, usually causing injury to the newly-wakened dynamic. These people (very small number) are Dr. Pyrex's special patients. He uses them as experimental subjects to further his research and refine his virus so it works better and better. His goal is to (as I said above) create a virus that can turn normal humans into pyrokinetic dynamics.
So Thomas Cathar is infected at a circus with one of Dr. Pyrex's prototype viruses and a week or two later burns his house down around him, destroying his whole family. Thomas' pyrokinetic powers, though previously latent, were very powerful, so he was totally unaffected by the fire he created and ran away from his house. No other dynamics awakened by the virus had been unaffected like that. Dr. Pyrex, through his agents, learns that Thomas' body was never found (he is presumed dead by all official records), so he initiates a huge search for him, because he realizes that he may have a complete success on his hands. Thomas is to Dr. Pyrex the culmination of his undercover research and he wants him desperately.
Thomas, of course, is unaware of this. He knows everyone thinks he is dead, knows that he has otherworldly powers, and goes completely underground. Whatever he is, he knows lots of people would love to get their hands on him. He is wracked with guilt because of the deaths he caused. However, he reveals himself to his fiance to reassure her that he is not dead. He shows her proof of his power, and she rejects him because she believes dynamics are demon-possessed.
Totally a wreck as a result, he realizes that Crystal Falls is his only hope of redemption and flees there (how public is it that CF is enclosed in the NZ?).
He is closely followed by Dr. Pyrex's henchmen, nearly captured right outside the NZ, but he uses his powers to destroy them and cover his tracks, subsequently vanishing into Crystal Falls, where he reintegrates into society as a normal human being (a firefighter, actually; poetic justice...he caused a lot of fires with his power). Because of Thomas' past in the spy world (specifically technology), he effectively creates an avatar that Dr. Pyrex cannot trace as the former Thomas Cathar.
Don't know how much of this overlaps with what I've previously said about the Flame (placeholder name, btw), but that brings in a villain.
Dr. Pyrex ultimately wants to create a small army of pyrokinetics to make himself a kingdom. Maybe he wants to rule the US or something. I don't know for sure, but he wants to make a powerful pyrokinetic strike-force.
If needed or desired, Dr. Pyrex could have greater interests than just pyrokinetics; or he could be part of a bigger ring of 'dynamic developers' trying to make different kinds of dynamics. In which case there might be a 'dark lord' mastermind behind all the research.
Anyway, that's that.
(Should we make separate pages for information on different characters, their particular villians, parts of the world that we have individually created, all for easy reference so that we can better integrate details from each person's contributions???).
-Ka