Snowbeard

Location

The Inn Ternet or /join tavern

Dwarven Fugitive

Before completing his quests

Hullo there, I'm Snowbeard. You may not know this but dwarves have a sixth sense that leads us to gold. Shiny gold. BEAUTIFUL GOLD!!!!! Ahem, sorry. We can get carried away. I think that gold sense may be why Vath wanted to enslave my people.

After completing his quests

MY GOLD! Wow, I can't believe you got it for me. Donna is one tough cookie. I'm sending you to collect on ALL my gold debts! Here is my battleaxe. Take care of it while you're in there... and be careful. Dwarfhold has become a VERY dangerous place.

All quests give you Dwarf Reputation
The quest Give Snowbeard His Gold unlocks only after you complete Donna Charmer's chain of quests.
He is reference to Snow White and the Seven Dwarves
He betrayed the hero (you) (on first sight). However, this was to get you thrown in prison so the you could free the prisoners.