Walter Chaco (played by John Milford) was the founder of Chaco Chicken in Dudley, Arkansas. He served in World War II and was exposed to cannibals by the Jale tribe of New Guinea. Upon his return to the United States, he founded the company and began a secret cannibalistic cult in Dudley that used the company as a front. Mulder figured out that Chaco was behind a series of disappearances upon discovering a case full of human heads in Chaco's mansion.