Margo discovers a toothbrush, which she suspects is Brandys, in Nicks apartment. Brandy arrives and agrees to cooperate with Margos investigation. Brandy admits that she and Nick were lovers. After some snooping and questioning, Margo considers the idea that Brandy killed Nick and has her taken into police custody. John thinks that Barbara has been so jumpy because she is guilty of conspiring with James. Barbara finally confesses that she was responsible for the kidnappings, but also admits that she is not sorry for the outcome and would do it again. At the boathouse, James has hypnotized Hal and makes plans for the future, including making Hal respond to the King of Spades. At the police station, Jack threatens to go after Lucy unless Craig agrees to back off of the Carly investigation. Craig relents, but continues to torment Jack about his relationship with Mitzi. Meanwhile, Katie finds herself in big trouble for not even having a drivers license. Needing a lot of money to settle her fines, Dahlia arrives, prepared to write a substantial check. Later, Craig offers Mitzi a deal: hell help her out of her financial crisis if she seduces Jack. Realizing that Craig wants Jack out of the way so he can have Carly, Mitzi turns the table and tells Craig how much she wants him.