The character talking is Roger "Verbal" Kint, a petty crook, who survived a massacre and fire on a ship in the port of LA. During his interrogation, Verbal introduces the mysterious criminal mastermind known as Keyser Soze. We learn about Keyser by something he did. Something that is so despicable that it's almost unfathomable. Something that scares the living daylights out of those who dare to cross him.
They come to his home in the afternoon looking for his business. They find his wife and kids in the house and decide to wait for Soze.
He comes home to his wife raped and his children screaming. The Hungarians knew Soze was tough. Not to be trifled with. So they let him know they meant business.
They tell Soze they want his territory - all his business. Soze looks over the faces of his family... Then he showed these men of will what will really was.
SUDDENLY, Soze pulls out a pistol and shoots the two men with guns. He turns and aims at the third man holding his child. The man threatens to cut the child's throat, slicing just enough to draw blood. SOZE FIRES. The stunned Hungarian watches the child fall from his arms. Sate turns the pistol on the next child, then the next and the next. He kills his children one by one in front of the Hungarian.
He tells him he would rather' see his family dead than live another day after this.
SOZE walks over to his wife, crying and beaten on the floor and holds up her head. She gives him the strangest look. One of trust perhaps, saturated with fear and humiliation. He puts the gun between her eyes and fires.
He lets the last Hungarian go, and he goes running. He waits until his wife and kids are in the ground and he goes after the rest of the mob. He kills their kids, he kills their wives, he kills their parents and their parents' friends.
He burns down the houses they live in and the stores they work in, he kills people that owe them money. And like that he was gone. Underground. No one has ever seen him again. He becomes a myth, a spook story that criminals tell their kids at night. If you rat on your pop, Keyser Soze will get you. And nobody really ever believes.
Keaton always said: "I don't believe in God, but I'm afraid of him." Well I believe in God, and the only thing that scares me is Keyser SOZE.