I role play the "monster" and decide what he would do.
Many times, they just disappear.
Sometimes, they do evil plots.
Sometimes, they are not particularly evil (Meepo, and a goblin merchant) and go do their thing (Meepo: try to take over the kobold tribe -- he succeeded based on my random determination method of whether the new blood or the old dynasty won the Democratic nomination!; goblin merchant -- sell stuff and occassionally appear as flavor).
Many times, they just disappear.
Sometimes, they do evil plots.
Sometimes, they are not particularly evil (Meepo, and a goblin merchant) and go do their thing (Meepo: try to take over the kobold tribe -- he succeeded based on my random determination method of whether the new blood or the old dynasty won the Democratic nomination!; goblin merchant -- sell stuff and occassionally appear as flavor).
Bring the bad guy to justice - is not the same as killing on spot
bad guy is let go - next time party encounters bad guy the encounter starts neutral or favorable. doesn't mean it ends that way
having clever bad guy 'trick' party into letting them go. that is part of encounter from start - so letting go will likely mean problems for party in future.