Our sorcerer got some officers to confront the person who stole his identity and we turned the human trafficking ring over to the guard who pulled everyone out relatively safely.
But to even things out the sorcerer killed someone for his cloak and my rogue stole stuff from a person we later found out leaves the thieves' guild the next session. Karmic balance.
This is about to happen in the next session we play. They are 100% gonna have a run in with the authorities when they sail into port, and it's gonna be up to them on how to deal with it. I would love for them to befriend the knights, but I know at best they'll spend a night in jail, and at worst they'll be hunted down like stray dogs by every Knight in the city. They're learning, though. A month ago I wouldn't even bother brainstorming alternatives, because they'd just fight everyone without thinking and wind up sleeping outside the city, again.