Tell me what you did.

I chuckled when he threatened me. The dialogue to pay him made me sound like a wimp.

I still paid though.

should be in the cheats hints and spoilers thingy.

I leave him to send thugs a few times then kill him.

I heard that if you kill him you only get as 40 coin bounty

It depends on the character I'm playing... If I play an assassin, I kill him when he gets back to the Wretched Netch Corner Club... If I'm playing a goodie tooshie Mage, I pay him... If I'm playing a dike Mage, like the ones that think they are better than you, I kill him where he stands.

Why, his head rolled around on the streets of Raven Rock shortly after him trying to intimidate me.

Ah, I just paid him and went on my way.

I ignored him and profit off the loot from his assassin's corpses.

I paid half the first time I played but have sniped his butt from the rooftops on every playthrough since

I killed him and his little sidekick.

HAIL SITHIS!

I let him live so he can keep throwing thugs at me.