When I was getting my yorkie to use the pad, she did the same thing. When she pooped around the house, I cleaned it up and used that spray that hides the scent. If you don't get that scent up, then your yorkie is going to continue to go there. Another mistake I made was that I didn't put the wee wee pads in enough spots around the house... I just set one or two out. For training reasons, you could also put your dog into a playpen area with a wee wee pad in it.
Most importantly, ALWAYS reward your dog when he goes in the right place! He'll learn that if he goes potty on the pad, then he'll get a treat!
Not sure about the biting of your daughter and how to fix that. But honestly, if you're the one who cleans up his mess and feeds him, then you're the owner. Good luck!