After returning from saving Albert and thwarting Dasha's scheme, the party attended the Autumn Festival in Pilzstadt. Celebrations were interrupted by the news that Egbert – along with Waldemar and Captain Dals and 20 soldiers – is coming to town to arrest the mayor and Mr. Wolf for treason. (For signing the treaty with the Boph). The party assembles to waylay the contingent from Kusteburg, but is surprised when Egbert takes Siegfried aside for a private parlay and reveals that he believes Byard is attempting to usurp the still absent Duke. Quickly, Siegfried concocts a plan to knock out Waldemar so Egbert can take command of the soldiers and return with the party to Kusteburg to confront Byard, but it succeeds only in scattering the soldiers temporarily and forcing Waldemar to flee. With the wizard gone, however, Siegfried is free to cloud Captain Dals' mind with a magical Suggestion, and concocts a story that the party was working at Egbert's behest to arrest Waldemar to seize incriminating documents and letters the wizard was supposedly carrying. They are aided by the fact that, while the party only knocked out the few soldiers that stayed behind, Waldemar on the other hand killed two of them outright with a Cone of Cold aimed at Coge and Siegfried.
After burying the bodies of the soldiers in the Pilzstadt cemetery and explaining the situation to Mr. Wolf and the mayor, the party enlists Scholar Ooph to represent the Boph in Kusteburg, and they charter a barge to take them all downriver.