Oblivion:Imperial Corruption

Quick Walkthrough
# Hear complaints of a crooked Imperial Watch Captain.
# Speak with the shop owner where this occurred and find out who's behind it.
# Report this to numerous guards and be directed to Itius Hayn.
# Find two witnesses and convince them to testify against the corrupt Watch Captain - Audens Avidius.
# After ten days, provided you are over level 5, Audens will find and attack you.
# Kill him and search his corpse for a note.

Detailed Walkthrough
Complaints
Talk to Luronk gro-Glurzog or his friend Ruslan, who both usually hang around in the Temple District, and they will complain about being robbed by some Imperial watchman while shopping at Jensine's "Good as New" Merchandise. Go to the shop in the Market District and talk to Jensine. If you raise her disposition to 70 she'll tell you the name of the soldier responsible - Audens Avidius.

Report Avidius
Report Audens to any of the guards around. They turn out to be of no use, as the culprit is a Captain and can only be arrested by someone of the same rank. That means you will need another captain's help to catch him. 
Try the famous Hieronymus Lex if you have not completed the Thieves Guild quest line. Lex is usually in the Waterfront District, but the quest arrow should point to him now. Speak to him, and he'll refuse to help too, as he's too busy with his search for the Gray Fox and will send you to another captain - Itius Hayn. 
If you have completed the Thieves Guild quest line go and talk to Servatius Quintilius. He follows a similar schedule to Lex, but the quest arrow should point to him.  When you speak to him he will tell you that he has only recently been promoted and is not willing to cause any trouble.  He, like Lex, will then tell you to go talk to Itius Hayn. You find Hayn in the city (following the quest arrow again).  If his disposition is at least 70, he'll tell you that you need to have two witnesses ready to testify due to the seriousness of the accusation. Get back to Luronk gro-Glurzog and Ruslan. The quest arrow should lead you to them. Raise their disposition to 70 to convince them to testify. If you ask Jensine to testify, she will refuse, regardless of disposition.

Justice Served
Now the quest arrow should point back at Itius Hayn, but you don't need to follow it. The next day, the witnesses will meet Itius for a brief moment. If you speak to Hayn after this he tells you that he shall arrest Audens Avidius. You can follow him until he does, but it is not necessary. The corrupt captain threatens to kill you, but afraid of Itius he peacefully goes to jail. The only reward for the quest is a fame point and an increased disposition with Jensine, but it is simple enough that you can finish the quest very quickly. Once you have persuaded the two witnesses to testify, the next part of the quest will play out even if you are not there. You can be doing something completely different, and at the appropriate time a quest update will appear telling you that Audens Avidius has been arrested.

Escape from Prison
After ten days, and when you are at least level 5, Audens Avidius will escape from jail and track you down, wherever you are, and attack you (He will 'find' you, even if you're in Oblivion.  If you are in the Shivering Isles, he will wait for you outside the Strange Door). He's poorly armed so you can kill him easily. In his belongings you can find a note saying that he escaped through the same route as you did.

Notes
If you try to confront Audens Avidius before he is arrested, he will put a 1000 gold bounty on your head. He will then proceed to arrest you with the normal dialogue.
It may take much more than a day for your witnesses to find their way to the proper authorities.
If Audens' disposition towards you is high enough (through fame, personality and so on) he will not attack when he escapes, and will act as a normal Imperial City guard. You could also charm him, yield to him and raise his disposition, if you have a powerful enough spell. Afterwards he stands around acting like a normal guard, and appears outside any prison you are sent to (like the Fighter's Guild members from the Desolate Mine).
Luronk and Ruslan can both die. Should one of them do so, there is no way to complete the quest.

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