Go talk to Lucas at the Farm in Swan Lake Basin (X:615 Y:498). He will ask you to find his daughter, who has been kidnapped by the foul beggars. You will receive Xena's Bracelet.
FIGHT: Find the 3 beggars (Dirk Lamming, Malone and Big Bellied Ben) at the Mortuary in Eversun North (X:292 Y:152). You will fight all three (level 25 Fencers) in a plot event. You will receive a Blackmail Letter when you've defeated them.
Return to Lucas with the letter to receive your rewards.