Nothing is more irritating then a party rogue getting caught stealing in a town and then we have to figure out what to do.
Figuring out what to do is easy. Just do nothing.
What you do depends on what story you want told.
Years ago, our party thief got caught stealin'...
Jane's Addiction
I've been caught stealing;
once when I was 5...
I enjoy stealing.
It's just as simple as that.
Well, it's just a simple fact.
When I want something,
I don't want to pay for it.
I walk right through the door.
Walk right through the door.
Hey all right! If I get by, it's mine.
Mine all mine!
errr...not quite.
Anyway, he got caught stealing, but evaded capture. He hooked up with the party while running from the Watch. Our group had been berating him about his cavalier attitude to endangering the party for some time, and this caused a repeat of all that...until the Watch actually tracked him down again, forcing the party to flee.
On the way out of town, the party crossed a narrow bridge, and he told my PC to "Do something, you idiot!"
My PC, Bear, WAS an idiot...a BIG dumb idiot. Str 18/00, Dex 18, Con 18, Int 6, Wis 6, Cha 6. He was also the thief's bodyguard and unquestioning buddy.
Bear stopped running, turned to face the Watch, and started taking them on, one by one...because the bridge was very narrow. The party fled while he bought them time.
After a while, the party strung up the thief and left him for the Watch to find, along with what he stole, asking only that the reward money be used to memorialize Bear. (He got an orphanage built in his name.)