In the OE EEC quest "Follow the Money", I found the bandit cave where they were holding Varuso Veloth. Since I didn't have the cash to pay for his release nor the levels to kill him, I tried getting his disposition up. Past a threshold, he hinted to me that Marki the Shark may have gotten killed south of Velonith. When I headed there, I found the body, but got no journal update. Furthermore, Cano back at the OE EEC hall has no new dialogue about Marki and is only interested in me getting Varuso out.

The quest should accommodate you finding the body before freeing Varuso.