Alan is a pawn shop owner.
At some point in his life, Alan became The Winchesters acquaintance. The level of his relationship to them is unknown, but it is indicated that his relationship is well enough and had been long time ago formed, as he immediately called Sam and Dean, when a Dinosaur plushed enraged in his store.
Jay, wanting to expand his owned properties, targeted Alan pawn shop. He planted the pocket knife to Alan' giant Dinosaur plush. As he planned, the ghost kid enraged and attacking Alan.
In distress, Alan called Sam and Dean. In a brief fight, Sam and Dean nearly overwhelmed, but Sam able to hold it. Dean, using Holy Oil, torch the plush. The plush later destroyed, but unknown to them, the pocket knife still keep intact.
Jay, acted innocently asking people there, pretending to asking enrything alright. Alan, being saved from this incident, offering the Winchesters to take anything that they wanted for free. Dean later asked for a Plasma TV, which Alan agreed. Jay unknowingly planted the pocket knife to the TV.
After some approaches, Alan started to break. Believing his place is haunted and he no longer interested with his business due to his age. He later agreed to release his property to Jay.
After their encounter with the Ghost Kid, Sam, Dean, and Castiel managed to put his spirit to rest. As Alan was about to sign, the Winchesters inform him that Jay set the whole thing up. Knowing that what Jay did to him and his victims was horrible but not enough to send him to jail as police cannot trust ghostly activity as the cause, they managed to hack his financial transactions and his business records, revealing his criminal activities and a large amount of tax hinderance. With this evidences, they give it to the police. The police later able to capture him, just before Alan signed the contract, preventing the transaction and ensuring Alan' business continue running as usual.