After asking around with some of the merchants the name "Sneaks" keeps coming up. Apparently he is a greasy fellow that seems to know a little bit about everything that is going on. You are told that you may be able to find Sneaks in the dungeons below some old ruins that a number of goblinoids call home.
You will find Sneaks in the main quest room.
If you make Sneaks helpless (pg. 197 CRB):
"Wait, wait!", pleaded Sneaks. "I have important information that you'lls want to hear. Verenkilar has been working with a despicable drow named Houndaer. I won't lie to you! I don't know where Verenkilar sleeps, but Houndaer knows!" With a little prodding Sneaks then proceeds to tell you where you can find Houndaer.
If you then succeed on an intimidate check against Sneaks:
"I lied, I lied. Don't hurt me! Verenkilar sleeps on the North side of the mountain. I don't know where exactly, but I saw him slinking off that way!"
For the added information you gain an additional 3 evidence towards finding Verenkilar.
On success the heroes get Sneaks's weapons as well as a roll on the treasure chart.
From here you can: