I believe my level was at 4 or 5. But I think there was some kind of bug. I went up to him, tried to pickpocket, got caught, reloaded the game, tried again, got caught again, but I kept standing there and even though he was upset that I was trying to steal from him, he did absolutely nothing. I pickpocketed him about 5 or 6 times before I got the key. He kept saying the same thing. I used the key and still he did nothing. I walked out of there with all goodies. I then went to his treasury and was able to open all the treasure chests and his guards were just standing around. Try it and see if it works.
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