Somewhere along the way, Saruman became ensnared by the lure of Sauron's power, and he began to also seek out the One Ring. It was later learned that Saruman, in his quest for power, sought to not only destroy the free peoples of Middle-earth, but also to overthrow Sauron and take rulership for himself!
Even with his creation of the "super-soldier" creatures, the Uruk-hai, Saruman's designs were inevitably overthrown following the Battle of Helm's Deep and the Seige of Isengard. Furthermore, one of his servants, the Rohirrim Grima Wormtongue, literally stabbed him in the back and sent the wizard plummeting down from atop his tower, Orthanc.
NOTE:' Although Saruman from the movies was killed by Wormtongue while the both of them were on top of Orthanc, the "book" version of Saruman managed to persuade the Ents in letting him go free once he handed over the keys to the tower. The wizard lived the rest of his days as a Shire criminal lord named "Sharkey." He led a band of rebel hobbits' and ruffians in a last ditch effort to take control of the Shire (at least). But Saruman was eventually betrayed and killed by Wormtongue after refusing one final chance of redemption given to him by Frodo Baggins.
Now, taking both sets of information into account, one can say that just prior to his betrayal by Wormtongue, Saruman made a "clone" of himself, Saruman of Many Colours. The clone, hidden away in parts unknown, awakened after his creator died. This "Saruman" retained all of the original's personality, even down to his thirst for domination. He would attempt to lead a hobbit rebellion within the Shire before being defeated by Robin the Shirriff.
Saruman of Many Colours looked completely different from his namesake; he appeared as a "futuristic hippie."