Schwarzwald's real name is Michael Seebach, a reporter for Paradigm Press. As a reporter, Seebach was obsessed with bringing the truth to the people of Paradigm City, but became frustrated as the Paradigm Corporation continually censored his work. Eventually his search for the truth would become an obsession, and Seebach began living a double life. In time he became even more obsessed with his work and cut himself off from human contact, including his wife and children. But Seebach's obsession also resulted with a attempt on his life by Paradigm which disfigured his face. He eventually plans to destroy the domes around the city. His character is influenced by Rorschach from "Watchmen." (Source: Wikipedia)

Spoiler

Seebach is the first pilot of Big Duo, and considers the pilot of Big O, Roger Smith, to be the one man like him in all of Paradigm city who pursues the "truth". Even after his defeat by Roger, Seebach continues to seek out the truth, apparently even in death. Presumably, through flashbacks of things he said before he died, Seebach did discover the whole truth behind the world and the loss of all memories forty years ago. Seebach appears one last time, to Alan Gabriel, to tell him that he's not worthy to pilot Big Duo.