Takeo Yamashiro was the brother of Maseo and a member of the Yakuza crime empire.
Takeo was jealous of her brother as he was married to Katana (DC), a woman Takeo also craved for. When General Karnz provided Takeo with a couple of special swords, he used them to kill Maseo and caused the death of Tatsu's family. However, he lost one of the swords to Tatsu and soon he learned that the sword could steal the soul of the living that it had slain.
Takeo tracked down Tatsu and stole the Soultaker Sword from her to use it on a ritual to summon the souls of the slain victims. Like this, Maseo's spirit was brought back to life and Takeo commanded him to kill Tatsu, now going by the name Katana. This caused a confrontation between the Samurai Squad and the Outsiders, which ended with Takeo's death at the hands of Katana, who used to Soultaker Sword to kill her enemy. Takeo's soul remained trapped in the sword ever after.