Refer to page 21, right hand column, second paragraph under Development. Then refer to page 22, left hand column, last paragraph before "Part Six".

What these passages are telling us is that if Borvius escapes:
He's going to run and tell the Sheriff his side of the story first!

That is about as real life as a fantasy roleplaying game ever gets. You see that every day in real life, in the news, and every single police procedural on Tv. :)

And why would he bother? Because he's been spotted by the PCs at the scene of the crime. He needs to explain why he was there, especially if the PCs killed any of his crew—which the Sheriff can identify. If he doesn't say anything, he's the one that looks guilty. So he needs to start the finger-pointing fast, especially if the PCs are strangers to the community.

The adventure covers this, but it's on a different page. Borvius's alibi is located on page 18, right hand column, second to the last paragraph from the bottom.

So how should the GM or the PCs handle this situation?

Well, the important piece of information the PCs need to get at the end of the Manor encounters is the link between the real bad guys and Ilsurian Storage and Hauling. The Sheriff normally provides this, but if Borvius convinces her the PCs are the "real" villains.. they need to get that clue another way. One simple method is to identify one of the thugs as an employee with a Knowledge (local) check. If that doesn't work, the PCs could go into hiding, and a roguish character could sneak around town. Once they spot Borvius (who is a public businessman) they could observe him going back to his place of business. Likewise if one of the crew escapes, that same technique would work as well.

Alternately, Sheriff Feldane is not an idiot. Borvius story is also pretty "convenient." You might permit a contested skill roll between Borvius's Bluff skill versus the PC's Diplomacy skill to see who she believes.

Or, the PCs could run away! They could flee the long arm of the law and fight to prove their innocence! Once they have that clue that connects the gang to Ilsurian Storage and Hauling, there is plenty of evidence in the gang's hideout to expose the Gilded Hands and clear the PCs and the Circus of wrongdoing. After all, sometimes it's easier to ask forgiveness than ask for permission.

If the PCs just surrender and get arrested? Yikes. That's an interesting group that gives up.

If it is a PFS Scenario I would say mission failure. Perhaps the Society bails them out, preventing their execution but the circus is ruined and its an unhappy ending. (If you have time left, by all means consider the paragraph below)

If its regular play and you're not constrained by time limits, I would use their arrest to allow them to learn their accusers are the Owner and employees of Ilsurian Storage and Hauling and give them a last chance to escape jail. Then they would hopefully assault the gang's lair and prove their innocence as I described above.

If that doesn't even work.. boy.. I would hang them. Life has consequences.

I hope this helps!

Overall, its got some exciting moments, though I'll need another read through to put some important details together in my head. Thanks!