Forming the AllianceEdit
The Alliance was first formed by Sam Sinister after he developed his newest Evil Plan based on an unknown discovery. In order to carry out the Plan, he needed more support than his Lords of Gold organization could provide. So he entreated all other villains to join his cause, promising great wealth and power to them in exchange for servitude.
Some accepted quickly, like Mr. Cunningham, Xeng Li, and a handful of other even more minor villains. Those who refused, specifically Maharaja Lallu, Emperor Chang Wu, and Senor Palomar, refused to take orders from him. The Villains' Alliance was joined by Ngan Pa and his Yeti Hunters on the recommendation of Xeng Li. All the villains and their henchmen agreed to work with Sinister to mutual benefit.
Raid on the MuseumEdit
The first operation of the Alliance was a raid on the National Museum. Sinister needed funding to support his plan, and realized that the Adventurers almost forgot about treasures once they reached the National Museum. Further, few attempts had ever been made to rob it, so security was rather lax.
Sinister began planning an infiltration, with the forced assistance of captured pilot Roy Bishop. While he worked on this, he ordered Admiral Xeng Li to prepare a fleet of ships that would appear to be part of the Imperial Fleet of Xi'an. Mr. Cunningham's mercenary Big Game Hunters were joined by Ngan Pa's mercenary Yeti Hunters in training for the attack. Finally, after several months of preparation, the attack was launched.
The sneak attack on LEGO City was quite successful, and nearly 75% of the Museum was looted, brought onboard the Alliance's fleet, and sailed off. While some villains on the alliance locked the treasures in their Private Collections, most were sold on the Black Market to buyers such as Senor Palomar; villains who had refused to join the Alliance. While in the end the Adventurers were able to reclaim many treasures, it still provided the Villains' Alliance with the funds Sinister needed to carry out the next phase of his operation.
Invasion of Xi'anEdit
By using ships which sailed the flags of Xi'an, Sam Sinister set things up so that the LEGOLAND government would declare war on and occupy China. This was obstensibly done as a rebuke to Emperor Chang Wu, who refused to join the alliance.
However, in reality it was to remove Chang Wu from power so that a crack team of Sinister's men could infiltrate China and search for a powerful artifact, forged of Gods' Alloy. None of the Alliance members, other than Sam Sinister, are aware of what exactly the artifact is, but they all know that it is more than just a simple artifact; it is some kind of weapon, possibly of alien origin.
Officially, the Villains' Alliance doesn't exist. It has no formal structure. Instead, when a specific task is needed, one of the villains that are members will send out their organization to get the job done.
However, unofficially, certain organizations are used more for specific tasks. Xeng Li's pirate fleet provides transportation around the world for all members of the Alliance, and also carries out naval attacks when needed. Cunningham and Ngan Pa's mercenary groups are used as hired muscle when land attacks are needed. Sinister's Lords of Gold are usually given jobs like infiltration and dealing with the black market. They are used the least out of all the Alliance's component organizations, which has lead to suspicion that Sinister is up to something behind the Alliance's back.
There are other, more minor villains that are also part of the Alliance, but whose organizations are too small to be given major tasks.