You've already taken care of him.

Llendo is dead? Good work, %PCRank. We can't let criminals flout the law as they please. Take this spear, fresh from the armory. Speak to me when you're ready for further orders.

Athryn Llendo must be brought to justice, %PCRank.

You already killed Athryn Llendo in Sebarmul? Doing vigilante work on the side, I take it. In any case, when you're ready, speak with me for more orders.

Athryn Llendo is a notorious smuggler in the region. The Hlaalu have failed to enforce Imperial law, thus it falls upon us to do the job. Go to Sebarmul by following the road west out of Teyn, then turning south onto the dirt footpath until you reach a cave. Navigate the cavern until you find the notorious smuggler. Execute him and report back to me.

I believe that matter is resolved.

Athryn Llendo is a criminal, but some say he is affiliated with the Camonna Tong. The Hlaalu probably chose to overlook his crimes rather than risk repercussions.