The party decided to split into two halves: one dedicated to scouting the forests and trying to find tracks of the elven rebels, and the other staying in the town to pursue their individual agendas. This decision proved to be the beginning of the end.
The warlock sought to become the town's executioner, that he might be able to sacrifice more souls to his fiendish patron, but he went about this by trying to break into the executioner's house. When caught, instead of outright killing the executioner, he decided to ask for an apprenticeship instead. This caused the executioner to call for the guards, and as per the law of the land, the warlock lost his left hand for attempted breaking and entering.
Now thirsty for vengeance, the warlock broke into the executioner's house again, but when he was caught yet again, this time he pulled no punches. With a single Eldritch Blast, he shattered the executioner's ribs and bed and, after taking some time to ensure that his victim did not die just yet, draw an arcane circle around the bed with the executioner's own blood.
Communing with his patron, the warlock turned down an offer from his patron to replace his hand and instead chose to simply offer the executioner's life as a gift. When it was all over, he decided to set fire to the room and, after doing so, run into the streets shouting "fire! fire!" that the fire would not go out of control and burn the entire town down.
When the fire was finally extinguished, the clamour and excitement of the scene had brought both the fighter and the guard captain to the scene. As the latter examined the scene, he discovered three important things: one, that a magic circle had been drawn around the charred corpse; two, that the warlock's dagger was still slightly bloody; and three, that all witnesses agree that it was the warlock who drew the crowd's attention to the fire. Putting these clues together with the fact that the warlock would hold a grudge with the executioner for the loss of his hand, the guard captain came to the correct conclusion that the warlock was responsible for this murder. The warlock and fighter were immediately arrested, and by the time noon broke on the next day, they were both hung by the neck until dead.
In the mean time, the wizard and the monk were still busy combing the woods for the elven rebels. It took them a couple of days, but they eventually uncovered what appeared to be expertly-hidden tracks in the forest leading further in. Following the tracks caused them to come across some elven scouts, and after exchanging a few blows with the pair, the scouts immediately broke away and fled even deeper into the woods.
Despite knowing that they were now probably heading deeper into enemy territory, the wizard and the monk decided to give chase anyway... and sure enough, they ran straight into an ambush of six archers and a cocky lieutenant. The lieutenant asked them why they should let the pair of them go, but when the question was met with only silence, the archers let loose their arrows and cut them down right where they stood.
So endth the tale.