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.

The cult brought in outsiders form beyond their community, which seemed to combined with the rituals he learned from the Jale tribe some how prolonged their lives and gave them youth, but when they ate a man infected with a rare disease, many began turning ill. That's when many of the cultists decided it was too dangerous to bring in more outsiders and instead used one of their own. Walter objected to this course of action and his own followers turned on him and decapitated him.

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