Alleg was an adopted Edema Ruh. When his family was murdered, he taught the killers how to be like them. Then, he led the Fake Edema Ruh Troupe until Kvothe discovered them, freed Krin and Ellie (the girls they had kidnapped), and killed all of them, Alleg was left to die slowly over the course of several days from a gut wound given to him by Kvothe.
It is interesting to note that Alleg had a great impact upon Kvothe's personality and thoughts on killing for a reason, a tranisition slowly to a person more like an Amyr. This effect was latter cemented by Gran a healer in the village the girls were kidnapped from.