Damazy comes out from his hiding place and, to save his skin, invents a story (told to another fine tune) that the house is known as the 'Haunted Manor' as a result of it having been built with the proceeds of some infamous acts.
Damazy surfaces from his hiding spot and, to avoid repercussions, tells a fabricated story (related in more detail) that the house is feared as the 'Haunted Manor' due to its construction being linked to some notorious events.