Douglas was once an investor in Khan Industries who lost his job as a result of a combination of ridiculously bad investments (like glow-in-the-dark sunglasses), forging Khan's signature, flagrant misuse of Khan's private Air Force for personal gain, ruining his suit and breaking his word. His quick temper and somewhat clumsy antics were a constant source of laughs for those around him (especially Khan's elite pilots), something he could absolutely not stand. He was constantly heard shouting "Stop laughing!" at the top of his lungs.
When he tries to invest at Louie's Place unsuccessfully, Doug resorts to forgery to use Mr. Khan's elite pilots to take it by force. When Mr. Khan learns of this, he terminates Doug on the spot.
Angered and driven off the deep end, Benson tries to blow up Louie's Place again but instead blows up the hut and him with it due since Kit moved the dynamite. He is stranded in a crater where a seagull laughs at him.
Doug claims that he's been laughed at since he was five.