As you wander around Falkreath a bit, you're likely to run across Thadgeir. The old man has a job for you- bring his friend Berit's ashes to the local priest, Runil. If this is your first time in Falkreath (as it is likely to be), you can find the old elf in the graveyard, in the middle of providing a burial service. With him are the local farmers, Indara Carelia and her husband Mathies. These two are here to bury the apparently somewhat sparse remains of their daughter. If you like, you can ask them about it immediately, or you can poke around in Falkreath until you get together the bits and pieces of explanation.
As it turns out, the two farmers welcomed a stranger recently- and that stranger then turned and tore their daughter to shreds. This man, named Sindig, was originally passing through, but stopped to work for a bit of coin. You will presently be told that he is currently in the town jail, though whether his punishment is being there or is pending later execution is uncertain. You will be given the quest goal of talking to him anyways, so being the completist you may be (or just curious) you can go and find him.
He's not hard to reach- the jail is in the downstairs area of the Falkreath Barracks, which you aren't by any means barred from entering. While there are several different cells in the area, Sindig is in the one immediately opposite the entry door to the Falkreath Jail. This cell, curiously, is not only barred at the door, it's waist-deep in water- which explains the vagueness of his punishment. No matter how enduring he is, he'll have to fall asleep or rest at some point, which is liable to result in his drowning.
When you approach the cell, Sindig nears the bars to talk to you. After a bit of evasive and self-deprecating speak, he eventually reveals to you that he is a werewolf. What's more, he's not entirely in control of his own actions. According to Sindig, he didn't have any conscious decision about killing the Carelias' daughter, having felt an uncontrollable urge to 'hunt'. The were goes on to claim that he needs (or at least needed) to be restrained, which may explain why he hasn't exactly been resisting his own jailing. His lack of control, he blames on a recent acquisition of his.