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Shady Smuggler is an Imperial smuggler located in the Royal Palace in Mournhold but is not in a cell that can be reached without console commands. Despite this odd placement, he is tagged as the owner of a massive amount of loose items throughout Morrowind. Even some of the first items the Nerevarine is capable of taking are actually owned by him. He also has a fairly extensive dialogue demonstrating knowledge of many current events. To encounter him in the Royal Palace enter
coc "mournhold, royal palace". This will put the Nerevarine inside a blank cell which the map calls Mournhold, Royal Palace.