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. 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.