Conclusion
When the authorities show up to the scene, Karg and the last thug are bound. Their investigation, aided by magic is brief, determining your story to be the truth. With that they take Karg and the thugs away.
Hubble sells some of his wares over the next two days, and you return to Sharn. Your trip goes without incident.
"Thank you for your services," Hubble says. "As promised, I will give you the rest of your award. In addition, I still have some of my eberron shards left. If you would like to purchase one, I will give you a substatial discount."