How to Complete Scoundrel's Folly in Skyrim
How to Complete Scoundrel's Folly in Skyrim
Continuing along the Thieves Guild questline, you are given the task to figure out who the unknown adversary is and why he is causing trouble in the Guild. You must complete Dampened Spirits before starting this quest.
Steps

Speak to Mercer Frey. Mercer will tell you that he believes he has finally caught the unknown adversary. From a note provided by you, Mercer claims that they are using an old Guild contact located at the East Empire Trading Company. Mercer tells you to speak with Gulum-Ei as he suspects he has information. Speaking with Brynjolf before you leave will give you more information on who Gulum-Ei is and his involvement in the Guild. Brynjolf recommends you to follow Gulum-Ei or bribe him for more information. Do not kill Gulum-Ei as you will not be able to get information from him and will cause Mercer to not give you a reward.

Find and speak to Gulum-Ei. You can locate Gulum-Ei at the Winking Skeever in Solitude. You will need to bribe him in order to get information. He will ask you to steal a case of firebrand wine for his client which can be stolen from the Blue Palace. If you have a high enough speech skill you can get past the bribe. It is recommended that you have a speech skill of 50 or higher.

Steal the firebrand wine from Blue Palace. The Blue Palace is close to the entrance and can be simply picked up. Bringing the wine back to Gulum-Ei will result in him telling you that he knows only that the woman in question has a nasty grudge against Mercer Frey. He will then head towards the docks away from Solitude and into the East Empire Company Warehouse. Gulum-Ei can be pickpocketed to get the key to the warehouse, making it easier for you to break in.

Follow Gulum-Ei into the East Empire Company Warehouse. You need to follow him into the warehouse while remaining undetected. You will be required to pick the locked door leading into the warehouse if you didn’t pickpocket Gulum-Ei. Stay on top of the shelves to avoid guard patrols. There is a small ramp at the entrance to get on top of these shelves. Once you reach the end of the shelves there will be stairs leading to a small ledge. At this point it is best to use the water to avoid detection. Gulum-Ei will enter a hidden door leading to the Brinewater Grotto. You can stay under water to remain undetected from the guards. If the guards are alerted, they will attack and give no bounty.

Follow Gulum-Ei into Brinewater Grotto. Sneaking can be tricky as there is a guard in the water and many others patrolling the area. It is possible to swim underwater to avoid being caught. To the right of the stairs after you see the two bandits talking on the dock, you will see a spider web which can be cut down and allows you to avoid detection. There are three frostbite spiders which you will have to kill.

Speak with Gulum-Ei. Once you reach Gulum-Ei, he will identify the real target, Karliah. Gulum-Ei can be killed, but you will not receive an award from Mercer.

Return to Mercer Frey and give him the new information. Tell Mercer about the new information you have discovered. This will complete the quest and begin the next quest called Speaking With Silence.

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