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The Mystical Murgo appears in the original Fable to sell The Hero a box of chocolates to give to his sister Theresa for her birthday. He dies in the subsequent bandit raid.
In Fable II The Mystical Murgo (presumably a descendant of the previous Murgo) shows up to peddle some of his bogus artifacts. However, a grown Theresa alerts a pair of children that one of his items, a music box, is not what it appears to be and that even Murgo doesn't know what it is. For just 5 gold, he sells the item off to the young Hero, setting into motions the events that start him on his long quest.
He returns to town after one has purchased the See the Future DLC. For another 5 gold a piece, he sells the Hero a Cursed Snowglobe, Cursed Skull, Spire Statue, and Colloseum Model.