He is indeed a demon, friend. An ancient spirit of hatred and evil, keeping humanity shackled by materialism, forever out of reach of true enlightenment. Those on his "Naughty list" are actually those who have rejected the status quo in hope of ascending above the opression of the physical plane. He gives these spiritual rebels no quarter, harshly forcing them back in line - he is master of time and space, able to deploy murderous teams of lesser demons (the "elves" of the popular stories) to any point on this world and many others to supress any uprising.
If humanity is to ever truly be free to progress beyond the horrors of modern life, we must somehow defeat this red-clad monster.