Starting Out
Phoenix sets up a base hidden under an abandoned warehouse using supplies provided by Ozpin.
Ozpin also purchases the buildings around it to make it easier for Phoenix to come and go without being seen, and he called in a favor to have Phoenix's base constructed secretly.
A majority of the Vale Police Department is corrupt, incompetent, or both.
Many crimes are covered up, especially those involving corrupt government officials.
The people responsible for the cover ups claim that they are doing it to keep the public from experiencing too many negative emotions and attracting Grimm.
Phoenix does something similar to what Batman did at the dinner party in "Batman: Year One" (the "none of you are safe" speech).
He starts to take out major criminals and corrupt officials that the police have been ignoring.
He has to interrogate some of the criminals who work with them to get the information he needs.
The police commissioner, Rufus Pravus, tries to have them freed, but he can't do anything without Grant, someone who he sees as a valuable resource that he can't afford to lose, finding out.
He decides to keep covering up the existence of the Flaming Shadow to make sure that no one questions the skills of the police force and creates a task force led by Grant to hunt him down.