Gar III's political failures eventually led to his death. Prince Gabriel of the Phoenix, claiming non-payment by the empire, declared his intention to take his payment by settling Berkwald in 1003. The imperial council banned Gabriel from going to Berkwald, but undeterred, the Phoenix marched to Berkwald and defeated imperial forces who tried to stop them. Though contested, many believe it was the Phoenix who were behind the assassination of Emperor Gar III through poisoning, leaving only a child heir and chaos as his legacy.

Emperor Gar III's mysterious death by poison threw the empire into chaos. A great inquisition by the Redemption against the imperial council uncovered evidence of Teratos infiltration, leading to the execution of most high court members in 1005.