"Asha receive you, Malfroy!"
Lord Malfroy was an Undead (perhaps an Akhkharu). Some time after 822 YSD, he took control over an important city of Heresh, Iluma Nadin, taking advantage of the previous lord's death at the hand of Wizards during the War of the Broken Staff.
A poor military commander by any means, Malfroy soon became renowned among the High Lords of Heresh for the somptuous feasts held in his newly acquired domain. Boasting particularly good wine, Malfroy's table started to be frequented by the Akhkharu Giovanni, who soon befriended him.
During the early events of Heroes V: Tribes of the East (which is set around 971 YSD), some Wizards from the Silver Cities, members of a Demonic cult led by Orlando, established a foothold in Heresh by conquering Iluma Nadin. Unable to repel their demonic troops, Malfroy fled and sealed the only road to the town in a magical shield, thus trapping his invaders. The key to the barrier was parted in two, and each half was given in safe keeping to ghost dragons.
This turn of events hampered Giovanni's plans of taking over Iluma Nadin himself. Wanting to earn the trust of Arantir (who at the time had grown in the most powerful lord of Heresh), the cunning Vampire's plan was to hand the city to the new High Lord as a sign of allegiance. Lady Ornella, Giovanni's apprentice, nonetheless managed to retrieve the two parts of the key and to forge them whole again. Seeing himself on the other side of the barrier, Giovanni learned from a fugitive Malfroy of the Wizard takeover, a fact neither Giovanni or Ornella were aware of.
Concluding that Malfroy is indeed a strategist without merits, Giovanni granted his old "friend" the final death, and proceeded to Iluma Nadin. The city was reconquered by the Undead hosts led by Ornella, and handed to Arantir.