Othoe is originally from Chelliax where he spent the bulk of his youth as a slave. Serving a wizardly master, he picked up a thing or two and eventually impressed his master enough to obtain some formal training - his master believing he could keep his new apprentice under his thumb.
Just a year ago, Othoe got the upper hand, and slaughtered his master while he slept. He then fled across the countryside disguising himself as a Gnome and traveling NE out of Chelliax and eventually into Andoran.
In reality his 'mentor' was in fact his father Othan - a stern Asmodeus worshipping powerful wizard in servitude to Vassindio Drovenge. They were slaves to be sure, but their lives were more comfortable than many free men. Othan manufactured magic items and scrolls for the House Drovenge and helped seal Vassindios place on the Council of Thieves.
Othoe has 'confused' his past - his brain making a last ditch effort at sanity. He believes his own story of a rough past and a domineering master whom he killed. However, it is not the Chellish constabulary that is out to get Othoe, but rather his own family. Yes - House Drovenge has lost a productive slave, but slave fights are slave fights and the son was not nearly as skilled as the father so their interest is merely in passing. They have bigger fish to fry.
Fearing pursuit none-the-less, Othoe has chosen to hide in Falcon's Hollow. He has heard of the plague there, but fears the long arm of the Chellish slavers more than any mere disease. He hopes in fact that any pursuers will be more afraid of the disease than catching a single fleeing slave.
What wealth he had left after his meager supplies and his spell book have long since been lost to the ravages of flight with the exception of a small flask of antiplague which he guards carefully.