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You'll receive this quest from Bertia in the
Bertia will tell you that somebody stole her favorite sheep Hogget from her, which is unfortunate because she was planning on making haggis out of it. You'll eventually find Hogget when you dig up Jake's grave in the graveyard (#3). There are two ways to learn how the sheep got there:
At the morgue (#2), if you read Roberts' Ledger, then you'll learn that somebody stole Jake's body, and that Roberts needed a replacement so the coffin would weigh the right amount. Roberts will then admit to stealing the sheep, and he won't require any coercion, but you won't earn any xp or gp.
At the morgue, if you simply talk to Roberts, then you'll have to win a rock-paper-scissors mini-game to get him to admit what he did. This will earn you 150 xp, and Roberts will mention that the person who stole Jake's body left a bag of gold behind. If you win another rock-paper-scissors mini-game with him, then he'll give you the 300 gp he found in the bag, and you'll also earn another 115 xp.
Either way, when you return to Bertia to tell her what happened, you'll gain 50 reputation with her and also earn 300 xp, and Bertia will storm off to complain to Captain Aureus (#4). When Bertia gets back, you can bring up the money Roberts received (assuming you learned about it), and this will give you a choice between being Altruistic (reputation +2) or Egotistical (bartering +1). If you give up the money, then you'll lose 300 gp, but you'll gain an additional 25 reputation with Bertia. If you keep the money, then you'll lose 25 reputation with Bertia.
Note: Since Bertia doesn't sell anything, your reputation with her doesn't make any difference.
Another Note: We've heard that after completing the quest, it's possible to have Captain Aureus (#4) arrest Roberts, but we've never seen a dialogue option for this.
1 - Market
2 - Morgue
3 - Graveyard
4 - Legion Headquarters