Valerie calls Chad on the phone to come and rescue her from Vincent. Someone is outside her door, and she is sure it's Vincent. Chad lies to Whitney in order to leave without arousing suspicion. Whitney tells Chad that she wants to go check on Theresa since he is going back out, and Chad forbids it. Chad runs into Vincent On his way to Valerie's, and he tells Vincent how disgusted he is of him for hitting Valerie. Chad regrets ever meeting Vincent. Vincent reminds Chad that he can't get enough of him because he keeps coming back for more. Vincent threatens Chad to meet him at the motel later on. If Chad doesn't meet up with Vincent, his secret will be out in the open. Eventually, Chad shows up at Valerie's to calm her fears. He assures her that Vincent won't bother her because he knows he'll be meeting Vincent later. Whitney goes to see Theresa against Chad's wishes.
Fox resumes his stay at the hospital, and tells Julian that he better get the placebo treatment this time around. Kay arrives at the hospital to see Fox, but all she could talk about is Miguel. Fox hates that Kay is going on and on about Miguel, and Julian reminds him to keep his cool. Fox is feeling great now that he is getting the placebo, but Julian reminds him that he is supposed to appear very ill. Kay admits to Jared that she is in love with Miguel and would rather be with him. Jared encourages Kay to divorce Fox and be with Miguel, even thought he is in prison.
While Jared is in the hospital being concerned about Theresa's well being due to the outcome of the trial, Theresa is with Ethan getting the comfort that Jared should have been giving her. She keeps sleeping with Ethan and then tells him that they cannot do it again. The blackmailer tells her to stay away from Ethan, but she just cannot seem to do that. At this point in time, Ethan doesn't seem to care what the blackmailer thinks because the blackmailer has already done enough damage. Jared calls Theresa while she is with Ethan. He expresses his concern for what happened to Luis and Miguel. He wishes that he could be there to comfort Theresa, but Theresa tells him that he needs to stay in the hospital. After Theresa gets off the phone with Jared, she laments that she is a horrible person. Theresa thinks that she can fight the blackmailer if she goes public with her and Ethan's relationship. Meanwhile, Jared is telling Kay that he is Theresa's number one man. He is clueless about Ethan and Theresa's trysts.
Kay pours her heart out to Fox, saying she never meant to hurt him, but that she loves Miguel.
Luis and Miguel meet the prison warden who promises them an unpleasant stay.
Sheridan surprises Chris by showing up at his hotel room. After her attempt to convince him to come back to her fails, she resolves to win Luis back. Later, she visits Luis in prison and is surprised when Luis is angry with her for badmouthing Fancy.
Ethan and Theresa make love as the jealous blackmailer watches. When he leans in to kiss Theresa, Ethan sees the blackmailer watching through a hole in the wall!
Ivy urges Fancy to let go of Luis, because there may not be hope for him. Angry, Fancy tells her mother she won't give up because she's finally found true love.
In Harmony Hospital where Fox is taking fake treatments for his faux illness, Kay tells him that she is in love with Miguel. Fox pretends that he was asleep and did not hear her. He continues to use his fake illness to keep Kay bound to him. Before Kay can make another attempt to tell Fox about her love for Miguel, Nurse Stevens enters to give Fox another IV. Julian also arrives and advises Kay to go home and get some rest. The nurse tells Kay that Fox needs rest and should not be stressed. Kay leaves but Julian follows her out. He encourages Kay to give Fox her love they slyly threatens her if she does not. After Kay leaves, Fox and Julian discuss how to keep Kay from Miguel. Julian tells Fox that it is only a matter of time before Kay realizes that she cannot have a relationship with Miguel. Julian tells him to have patience. Everything has worked out so far and they will cope with whatever happens.
At State Prison, in their prison cell, convict Steve tells Miguel that someone powerful has framed him and Luis. Miguel tries to figure out who has the power to pull off such a big frame. He concludes that only someone as powerful as Alistair Crane could do it, but since Alistair is dead, Miguel is puzzled as to who it could be and depends on Ethan to get the answer, as he pours out his guts and tells his whole life story, especially his history with Kay, to his new prison pal, Steve. Steve tells him that even if Miguel is innocent, he has to face facts. He's a lifer and not likely to ever get out of prison. He advises Miguel to let Kay, and his daughter Maria, go. He tells Miguel that he can find a new lover in prison. Kay brings Maria to visit Miguel, but a guard who moves Kay away to another room interrupts the visit. The guard says that she is going against policy, but that she wants to help, so she lets Miguel and Kay spend some private time together.
Outside the visitors' room, Fancy and Sheridan blame each other for Luis' death sentence. Sheridan tells Fancy that she is as cruel to her as she was to her sister Pretty. They continue to belittle each other until Fancy leaves her in the hall. While Fancy visits with Luis, Sheridan looks on jealously. While Luis and Fancy express their feelings for each other, Sheridan watches and convinces herself that Luis will eventually see through Fancy's surface goody-goody image. Luis is convinced that he will be executed and he tells Fancy not to grieve for him. Fancy tells him that she loves him and will be faithful to him no matter what happens. Sheridan eavesdrops and mutters snide comments about Fancy's declaration. Suddenly Luis jumps up and harshly tells Fancy to leave. Both Sheridan and Fancy are stunned by his behavior. Luis tells Fancy to find someone else, but Fancy refuses. She tells Luis not to give up. A guard tells Fancy that her time us up. Luis tells her that he loves her. Silently he thinks that the he will be dead the next time she sees him. Outside the visitor room, Fancy and Sheridan start squabbling again. The guard tells them that Luis has taken both of them off the visiting list.
At the mansion, Ethan finally notices the two eyeholes in the wall in Theresa's bedroom and uses an axe to break into the wall. Instead of escaping the blackmailer waits for Ethan in the hidden passage. He tries to leave, but cannot get the door open before Ethan catches him. Despite having his hands around the much smaller blackmailer's neck, Ethan does not unmask him. Before Theresa can call security, the blackmailer pulls on a rope that dumps a load of dirt on Ethan and escapes through the tunnels that riddle the mansion. Ethan and Theresa follow. They are surprised by the tunnels, which apparently, though large and extensive are unknown to ant current Cranes. They conclude that they blackmailer used the tunnels to attack Fancy and to escape unnoticed so that the blame fell on Luis. As they wander the tunnels, the blackmailer gets behind them and manages to separate Theresa from Ethan. They are lost in the tunnel, but cannot hear each other calling out. Theresa screams and faints when the half man, half woman, who is laughing hysterically, confronts her. Ethan hears Theresa scream and rushes to her aid.
Miguel asks Kay to forget about their dreams of a future together. He explains his circumstances have changed and Fox can provide for Kay and Maria in a way that he can't.
The half-man/half-woman has Theresa cornered in one of the secret passageways. Ethan tries to find her but the torturer drags Theresa into a hidden room. When Theresa tries to reason with her captor, he rants that no one ever wanted him.
Sheridan and Fancy are heartbroken after Luis takes them both off his approved visitors list. Later, Sam is taken aback when Fancy tells him she wants to quite the force.
A cruel prison guard stands by as Luis' new cellmate beats him up.
Paloma is worried for Luis because she knows how cops are treated in jail. Noah spends some time with her to help keep her mind off Miguel and Luis. At the prison, the guard assists in the attack on Luis by securing him so that a prisoner can punch his lights out. Sam goes to check up on Luis and notices the attack on him and tries to interfere. The guard pretends as if he is not a part of the fight, but Sam doesn't believe him. Sam wants to inform the warden, but Luis stops him because he thinks that the warden is behind it since Luis is a marked man. Even though Luis barred Fancy from seeing him, he misses her. Sam tells Luis that Fancy quits the force, and Luis feels guilty. Sam thinks that the person who is behind Luis and Miguel in jail is the same person who is blackmailing Theresa and Judge Reilly. The guard tells Luis that Sam cannot help him.
Esme pays Fancy a visit. Fancy fills her in on Luis' situation, and Esme, being herself, pokes fun at the situation by stating that Luis won't get lonely in prison because of his looks. Esme gives Fancy an idea of how to see Luis when she blabbed about her former lover who is jailed. Fancy decides to dress up like a geek so that she can see Luis in prison. Esme tells Fancy that she ran into Pretty in Milan, and it seems as if she was up to something because she was using an alias. Fancy thinks it's Karma that got her in this situation with Luis. It's payback for what she did to Pretty. Meanwhile, Ivy is lashing out at Sheridan for attacking Fancy on the witness stand. Sheridan tells her that she was saving Luis. Ivy is smart enough to know that there was no saving Luis since it's all a set up, and Sheridan knew that. Sheridan just wanted to stick it to Fancy. Ivy lets into Sheridan and tells her that she is just like Alistair and Julian. She is selfish and manipulative and doesn't care who she hurts, as long as she gets what she wants. Ivy softens up and tells Sheridan that it's not too late to turn her life around, and she needs to stop hating Fancy because the hate will destroy her and it doesn't help that she has already lost Chris and James. Sheridan resents that Ivy is lecturing her since she went through great lengths to break up Sam and Grace. Ivy tells Sheridan that she was wallowing in self pity, and she doesn't want her to make the same mistake. Sheridan refuses to listen to Ivy. She intends on doing whatever she has to do in order to win Luis over. Ivy turns her attention to Fancy, and she is worried about Fancy and her desperation to see Luis at all cost. She is in her "Crane mode;" she will do whatever it takes to see Luis.
The blackmailer is determined to torture Theresa by letting her watch Ethan die. She disobeys his wishes, and now she has to pay. Theresa promises to do anything the blackmailer wants in order to save Ethan. Theresa has to break it off with Ethan and promise not to be with him under any circumstances. In addition, Theresa has to be a devoted wife to Jared and have his baby. If Theresa doesn't comply, Luis will die; Miguel will rot in jail, and he will tell the world the truth that Little Ethan is Ethan's son.