I'm going to level with you guys, I know I've got the sequence of events out of order. I believe the correct order was you talked to Corporal Wiggins, he implicated Menfa, a witness who claimed that Li Hao perpetrated the murders, and then Menfa quickly cracked under interrogation from Karsh and admitted that he had been threatened to frame Li Hao to free Tan Shuhui (Centipede) after Hong Wei Tung had bribed the Magistrate. They then went to see Li Hao, gave him 2/5ths of the Scorpion gold, and Li Hao was promptly arrested. They busted him out of jail and went to confront Hong directly at his manor. Fallister advised waiting for the Lizard to return, but Brog was certain the Toad (Li Hao) was invincible and could help them beat Hung (who turned out to be the Snake of the Poison Clan). All would have probably gone according to plan, had not the Scorpion been waiting at Hung's manor in hiding and instantly hit the Toad in his weak spot, his ears. Li's kung fu was broken, and the party now faced the Snake and the Centipede (who had just that day been released from prison) without Li's help against them. The party agreed to call it a night then.
You are currently at 3440 xp each. You need 1560xp each to advance to 3rd level (total 5000).