Following his fight with his stalker in the city street, Ry is arrested and taken to the city jail. By wielding a cogent argument of self defense, and some of Tyfon Julander's influence, Ry is able to get released before the day's end. However he is again – with his father in tow - that very night by the same man he fought with earlier and two of his friends.
After the combat Ry learns that the attackers are members of the Howl Street Gang, which is a known criminal organization in Goldshore that usually operates a fairly subtle protection racket that some business owners in the city have even welcomed from time to time. He learns that some portion of the organization has a new boss named "Neisa" who has apparently been sending more competent gang members out on numerous errands of late.
Ry visits the wizard, Korifas Noilum, the following day and consults regarding his strange experiences – including his odd dreams and visions. After nearly an hour searching through the hand-sketched renderings of strange beasts in a number of books, Ry identifies a creature from his dream which – according to the text – is a fiend capable of manipulating the memories of mortals. So after procuring a healing of his wounds from the church of Cayden Cailean for a humble donation of 20 gold coins, Ry approaches Malhron Tollandur of the city guard with his suspicions that a fiend has found its way (somehow) into the city and begun acting to influence its citizens. Predicated on the promise that he will first speak with Korifas himself to confirm these suspicions directly – Malhron agrees that something should be done about this, that the city guard should concern itself with said doing, and offers that Ry Julander should be in charge of making that happen.