A conspiracy against the Dukes of Baldur's Gate is afoot.
Lady Araya, Lord Maxwell and Lord Therton will be at 16 in the third level of the Three Old Kegs. Approach them and you'll overhear them plotting to overthrow the Council of the Four. There's multiple ways to handle the situation.
One possibility is to blackmail them. You get 200gp, 300xp and the Ostentatious Boots if your Charisma isn't good enough. If you make a Charisma check (I had 17 after casting the Friends spell) you'll get 600gp, 300xp, the Ostentatious Boots, a the Cloak of Protection +1 and a Dagger +1.
Bring the Seditious Letter to Corwin at 6 in the first level of the Three Old Kegs. She'll comment that she wished you had come to her about it first instead of taking matters into your own hands. Replying that you had to defend yourself will earn 500xp and a +1 to Reputation. The other two replies also earn 500xp but also a -1 loss of Reputation instead.
Another possibility is to offer to join their conspiracy. Failing the Charisma check will make them conclude that your offer seems too good to be true, and they'll leave with the Quest unfinished.
Making the Charisma check leads to them asking you to find their co-conspirator, Eldric, downstairs. But Eldric is nowhere to be found.
Speak to Corwin at 6 in the first level of the Three Old Kegs. She'll tell you to talk to them some more to induce them to incriminate themselves, while she gets reinforcements from the Flaming Fist.
Speak to the trio again. It won't be hard to get them to explain some of the details of their conspiracy. Corwin will show up with Inspector Tyrtle and another member of the Flaming Fist to place them under arrest. She'll reward you with 750xp and an Emerald.
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