I think he is responsible for the terrorist attack that killed Luke's father and framed Ken.
Also he is M.Bison/Vega's mentor or fellow classmate.
I agree that JP set Ken up for a downfall so that he'd be the vessel for the Psycho Power
Has it even been officially confirmed JP uses Psycho Power? While I don't doubt a possible relation and the fact that he is a shady guy to say the least, it seems its all speculation so far.
What do you think?