The earliest record of Šćepan is his arrival to the town of Maine in modern day south-western Montenegro in the autumn of 1766.
At the time, Maine was held by the Venetians.
At Maine, he worked as a doctor and appears to have become a popular figure.
A group of Montenegrin elites and monks soon began to support him and created a rumor that he was Tsar Peter III, having escaped into exile.
How this rumor originated, who exactly was behind it and why it was created in the first place is unclear.
By August 1767, the rumor had become widespread among the Montenegrins, though Šćepan himself did not formally proclaim himself to be Peter.
The rumor was instead reinforced by the air of mystery around him and a series of hints the would-be Tsar gave the people around him.
While in church during prayers for the Russian imperial family, it was said that Šćepan wiped away his tears and turned to face the wall in sorrow upon the mention of Peter III's son, Paul.
At one point, Šćepan wept upon seeing a portrait of Peter III in Maine's Orthodox monastery.
Many of his supporters would later say that they saw a distinct likeness between the portrait and Šćepan.
Respected Montenegrin figures who had been to Russia also reinforced the idea by swearing that Šćepan was none other than Peter III.
Desperation due to the lack of leadership and a fanatical admiration for Russia among the Montenegrins led to Šćepan becoming an increasingly prominent figure.

As these rumors were swirling, Šćepan issued a proclamation to the people of Montenegro, compelling them to end their feuds with each other, to pertain to their Orthodox Christian ideals, to prepare for war against exterior enemies and to expect bountiful rewards.
Refusing to personally either confirm or deny whether he was Peter III or not, he signed the document with "Šćepan Mali, the smallest on Earth, and good unto the good".
In answer to the proclamation, a gathering of Montenegrin chiefs and lords met at Cetinje, Montenegro's capital, on 3 October 1767 and agreed to stop all feauding between the clans of Montenegro, but only until 23 April the next year (Saint George's Day).
Šćepan considered this armistice dissatisfactory and tore up the message sent by the gathering of nobles, stamped on it and demanded that they instead swear to uphold peace between each other in perpetuity.
His display of royal displeasure convinced the people of Montenegro even more that he was Peter III of Russia.
The excitement amongst the Montenegrins was so huge that Prince-Bishop Sava Petrović was initially convinced of Šćepan's claims, despite at one point having met the real Peter III.

On 17 October, the chiefs and lords of Montenegro gathered again on the plains outside Cetinje.
A monk read out Šćepan's commands to a crowd of perhaps four hundred nobles and soldiers, whereafter they agreed to uphold the perpetual peace.
Ignoring that the town was within Venetian territory, the chieftains of the Montenegrin clans then travelled to Maine and paid grateful homage to Stephen.
Despite still refusing to confirm or deny the suspicion that he was Peter III, Stephen was by this point regarded to be the deposed Russian Tsar by a majority of Montenegro.
On 2 November, the Montenegrins officially recognized him as Peter III in a charter.
In early February 1768, Prince-Bishop Sava received word from the Russian ambassador to Constantinople (the capital of the Ottoman Empire) that Šćepan was an impostor.
Armed with a letter exposing the would-be Tsar, Sava attempted to convince the people of the truth, but the Montenegrins preferred the hopeful rumor to the more distressing reality.
Sava was stripped of his possessions and secular power and locked up within his own monastery.
Šćepan also pillaged the Prince-Bishop's property in revenge.

Šćepan had effectively been proclaimed as the country's ruler in 1767 and with the Prince-Bishop pushed aside, he established himself as the absolute ruler of Montenegro in February 1768, becoming the country's first and only "Tsar".
In April, he moved his residence to the principality an
The earliest record of Šćepan is his arrival to the town of Maine in modern day south-western Montenegro in the autumn of 1766. At the time, Maine was held by the Venetians. At Maine, he worked as a doctor and appears to have become a popular figure. A group of Montenegrin elites and monks soon began to support him and created a rumor that he was Tsar Peter III, having escaped into exile. How this rumor originated, who exactly was behind it and why it was created in the first place is unclear. By August 1767, the rumor had become widespread among the Montenegrins, though Šćepan himself did not formally proclaim himself to be Peter. The rumor was instead reinforced by the air of mystery around him and a series of hints the would-be Tsar gave the people around him. While in church during prayers for the Russian imperial family, it was said that Šćepan wiped away his tears and turned to face the wall in sorrow upon the mention of Peter III's son, Paul. At one point, Šćepan wept upon seeing a portrait of Peter III in Maine's Orthodox monastery. Many of his supporters would later say that they saw a distinct likeness between the portrait and Šćepan. Respected Montenegrin figures who had been to Russia also reinforced the idea by swearing that Šćepan was none other than Peter III. Desperation due to the lack of leadership and a fanatical admiration for Russia among the Montenegrins led to Šćepan becoming an increasingly prominent figure.
As these rumors were swirling, Šćepan issued a proclamation to the people of Montenegro, compelling them to end their feuds with each other, to pertain to their Orthodox Christian ideals, to prepare for war against exterior enemies and to expect bountiful rewards. Refusing to personally either confirm or deny whether he was Peter III or not, he signed the document with "Šćepan Mali, the smallest on Earth, and good unto the good". In answer to the proclamation, a gathering of Montenegrin chiefs and lords met at Cetinje, Montenegro's capital, on 3 October 1767 and agreed to stop all feauding between the clans of Montenegro, but only until 23 April the next year (Saint George's Day). Šćepan considered this armistice dissatisfactory and tore up the message sent by the gathering of nobles, stamped on it and demanded that they instead swear to uphold peace between each other in perpetuity. His display of royal displeasure convinced the people of Montenegro even more that he was Peter III of Russia. The excitement amongst the Montenegrins was so huge that Prince-Bishop Sava Petrović was initially convinced of Šćepan's claims, despite at one point having met the real Peter III.
On 17 October, the chiefs and lords of Montenegro gathered again on the plains outside Cetinje. A monk read out Šćepan's commands to a crowd of perhaps four hundred nobles and soldiers, whereafter they agreed to uphold the perpetual peace. Ignoring that the town was within Venetian territory, the chieftains of the Montenegrin clans then travelled to Maine and paid grateful homage to Stephen. Despite still refusing to confirm or deny the suspicion that he was Peter III, Stephen was by this point regarded to be the deposed Russian Tsar by a majority of Montenegro. On 2 November, the Montenegrins officially recognized him as Peter III in a charter. In early February 1768, Prince-Bishop Sava received word from the Russian ambassador to Constantinople (the capital of the Ottoman Empire) that Šćepan was an impostor. Armed with a letter exposing the would-be Tsar, Sava attempted to convince the people of the truth, but the Montenegrins preferred the hopeful rumor to the more distressing reality. Sava was stripped of his possessions and secular power and locked up within his own monastery. Šćepan also pillaged the Prince-Bishop's property in revenge. 
Šćepan had effectively been proclaimed as the country's ruler in 1767 and with the Prince-Bishop pushed aside, he established himself as the absolute ruler of Montenegro in February 1768, becoming the country's first and only "Tsar". In April, he moved his residence to the principality an
Šćepan Mali