Edward Shouse was a part of the Michigan City Priosn escape and a part of the Terror Gang from September 1933 to November 1933.  Shouse was a part of the Lima Ohio jail break of John Dillinger, the St. Mary's Ohio bank robbery, and was suspected as being a part of the Greencastle Indiana bank robbery.

Shouse was expelled from the gang in November 1933.  The reason for this expulsion is vague.  Reports state that Shouse was a suspected informer, Shouse had slept with Mary Kinder, Shouse was trying to sleep with John Dillinger's girlfriend, Billie, or that Shouse chose to leave the gang due to the fact that he had been cheated money and that Pierpont was "kill crazy".

Shouse was arrested at the France hotel in Paris, Illinois, as he was trying to drive away from the hotel.  During the arrest, and subsequent gun fight, Indiana State Police Trooper Eugene Teague was accidentally killed by Lt. Chester Butler.

Shouse later turned State's evidence against the Gang and testified against Pierpont and Russell Clark in their trials for the murder of Sheriff Sarber.  In exchange for his testimony, Shouse avoided murder charges himself.