I get the impression that the OP is suggesting that Cauius Skooma problem may have been cover. The relevant lines he so helpfully didn't provide are:
"I'm just an old man with a skooma problem."
"Interesting old fellow. Been in Balmora a long time, since before the District reorganization. Been in some trouble, but he apparently knows some people. Goes off for a while, then comes back. He's a veteran, I think -- has friends over at Fort Moonmoth. Don't know where he gets his money, but I wouldn't be surprised if it wasn't legal."
"The old greyhair gobbles sugar like scuttle. Chirranirr is surprised he still walks. But it doesn't affect him. That is the mark of a long-time user."
"I don't know what your business with him is, but be careful. Caius Cosades may appear to be a pathetic old man, but don't judge by appearances. Some people made that mistake a while ago, and now they're not with us anymore."