I have a level 9 char named Koryu, who is NOT currently wanted by the authorities. I am willing to have him level up, acquire the Thief role, learn peek, then try it out on various NPC's without trying violence or theft.
This should establish whether or not there is a bug in the Peek skill.
Well, Koryu has peeked(and failed) at NW vendors, a custodian, a Silvan Archer, Guide, Justin, Anima, Britney, couple of south bots, Lil Peaches, Lil Bugsy, and still isn't wanted yet.