"Flakey" Pete Finnegan, played by David Ogden Stiers, was a homeless person who is in the Tanners' neighborhood during Thanksgiving. ALF leaves food and clothes for him. When he discovers ALF, he turns him in to the Alien Task Force, but when they become friends he tells the Alien Task Force that he himself is the alien and they call off the search, thinking that "Flakey" Pete is just trying to get a free meal.
At first ALF calls him Ed, because he says he looks like Mr. Ed. "Flakey" Pete Finnegan once did space research in the military, but left the military because of his strong anti-war sentiments.