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The Haunted Horseman was the disguise of the Duke of Strathmore.
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The Duke used it to scare of visitors to Hagglethorn Hall so he could take it over, dismantle it, and sell the bricks for souvenirs. He used luminous paint to make himself and his horse look ghostly, and used secret passages in the castle to make it appear that he could go through the walls. He also had help from Cyrus Wheedly who dressed up as the Moat Monster in exchange for half the money from the sale of the castle. After the two were caught, instead of calling the authorities, (the duke pointed out that doing this would bring great shame to the family name) the two had to use their disguises to attract visitors and help raise money for Hagglethorn Hall. The duke had to dress up as the Haunted Horseman and ride through the halls three times a day, giving him saddle-sores. (The Haunted Horseman of Hagglethorn Hall)