Carter thinks he made a mistake trusting Mark to come forward against Nick Newman, but changes his mind when Cod comes by. Cody tells him that the police searched Crimson Lights and found drugs in a bag of coffee behind the counter. Carter agrees to stick around and cover Cody's shift at work while he is questioned by the police. Larry and Carter are very excited at the news. Warton is still worried about Tricia being a loose cannon. Carter tells him not to worry because he can handle her -- a few smooth words will win her over.
Nick & Sharon
Nick and Sharon get stopped, as they are about to board their flight. A detective wants to ask them a few questions about the drugs they found in the coffeehouse. Nick and Sharon are surprised at the news and want to know how they found it. The detective says they had a search warrant due to sworn testimony and certain evidence. When Nick demands to know what evidence they have, the office asks them to come downtown voluntarily for further questioning. Nick believes if they go ahead and leave that there will be a firestorm of publicity, so they decide to leave the next day instead. Nick assures Sharon that he will straighten everything out in no time.
Ryan and Keith corner Tricia at her apartment, telling her that they don't think she is in any shape to leave town right now. Keith points out that if he and Ryan agree on something, it should be taken seriously. Tricia says she is fine and doesn't need either of them or their help. Keith states that one way or another she will get help. Tricia can't believe they would lock her up, but Keith says he is trying to protect her. They want Tricia to agree to go to the see the therapist now with them or allow them to meet her "friend" -- or at least tell them who he is and how they can reach him.
Jack & Phyllis
Jill tells Ashley that Jack was using Phyllis to get information but became "ensnared by her web." Ashley tells Jill what happened to Bunny at the chapel and Jill is sure that it was Phyllis's handiwork. Ash says it doesn't matter anyway because Bunny never had a chance with Phyllis around.
Phyllis tells Jack that Victoria has demanded that she spy on him. She would quit, but she signed a non-compete clause so she can't. She says she wants to find a way to keep Jack and her job. Jack starts to confess but Phyllis hears it as an idea to give them false information, information that has been discarded, to convince Victoria that she has complied with her demand. She "thanks" him for the idea and they make love. She confesses that this idea proves to her that he wants to keep this "thing" alive and kicking as much as she does.
Jack goes back to the office. He is thrilled that he got the information he wanted about Brash & Sassy, but keeps hearing Phyllis's words about trust in his head. Ashley comes in and wants to know if he broke it off.
Olivia and Alex run into each other at the hospital. Alex dodges questions about her relationship with Malcolm. Olivia apologizes for overstepping. Alex suggests that whether or not Malcolm is having a serious relationship, he will still want to have a relationship with his son. Olivia is furious and leaves.
Malcolm goes to a father/son event at Nate's school and sees Neil there. Neil asks if he cleared this with Olivia. Malcolm gets upset and Neil tells him that Nate is starting to resent spending time with Neil because of all the tension. Malcolm admits he hadn't thought of that, but the difference between them is that he is Nate's father. Neil says he has pleaded his case with Olivia, but doesn't want her to end up shutting Malcolm out all together.
Nate is happy to see his dad and gives him a present to remind him to see him. Nate reveals that it "sounded like" he was too busy to see him. Malcolm is furious and goes to see Olivia, telling her that she has crossed the line.
Nikki tries to track down the guy she hired to make the sperm switch to see if he knows whose sperm it was. He, in turn, has to track down his "independent contractor" who they find out is dead. Nikki cries to Katherine that she will have to get used to living with the guilt of bringing and unwanted innocent child into the world.
Victoria details the Brash & Sassy Spring campaign to Victor. He wonders where her confidence is coming from and suspects that Phyllis may be the inside source. Phyllis then enters and tells him that he'd be wise not to dismiss any info she gets on Jabot. Victor is skeptical as to how she will obtain the information. She will use her connection to Jack. He thinks she's reluctant to do it and wonders why. She admits to having reservations but not about Jack, about Victor. She wonders if this scheme only confirms his worst fears about her. He dismisses her and tells Victoria that Phyllis is the kind of woman that he can't tolerate but does so only because she is currently useful to him.
Ashley doesn't understand why Jack now trusts Phyllis. He explains how he overheard the message from Victoria and how Phyllis admitted that she was ordered to spy on him but refused. Ashley doesn't buy that Phyllis was worried about her job until Jack mentions her non-compete clause. He maintains that she was very sincere with him. Ashley asks him if he's in love with Phyllis. He feels guilty for what he's done and wonders if he should give her the benefit of the doubt. Ash suggests letting her down easy. He then confesses to seeing the Brash & Sassy Spring campaign info. He worries that if they use it the Newman's will blame Phyllis. Ashley is unsympathetic and tells him to deal with it, wishing him luck. He later gets a call from Phyllis. The plan is working she tells him but she definitely needs something to give them. Something harmless but that will satisfy the Newmans. She wants to work out a strategy tonight but he tells her tomorrow.
Warton and Matt listen to the news for any info on an arrest but nothing so far. Warton then wonders why Matt has decided to stay in town and suspects that he has a second agenda that involves Sharon. He always planned to stick around to make sure everything goes smoothly. Larry reminds him that it was supposed to be about the money. Matt dismisses his concerns. Larry questions how he will juggle two women when Tricia is such a lose cannon. He swears that Tricia is completely under his thumb.
Keith and Ryan press Tricia to name her mystery man but she holds firm. She won't put him through what Ryan and Tony both went through. Ryan suggests that the man only speak to him, without Keith present. She calls Carter and he apologizes to her for his earlier outburst. She mentions that Ryan and Keith want to meet him. He refuses. He tells her to leave and come to his apartment immediately. Ryan finds it strange that her mystery man won't even talk to him over the phone. He questions if the man is looking out for her best interests.
Olivia and Malcolm continue to argue about Nate. He can't believe that she told Nate that Malcolm doesn't want to see him. She thinks Nate is just exaggerating but he's livid. She threatens to call security unless he calms down. Things can't go on like this he tells her. She agrees. She has tried to work out a way to include Malcolm in Nate's life but it hasn't worked. Limited visitation is hurting Nate so she is cutting ties completely.
Paul is impressed with the books and congratulates Lynn and Marissa on their good work. He leaves to meet with Nikki. Lynn suspects that Paul maybe planning a trip to Hong Kong. Mary overhead and can't believe he would consider doing that.
Paul meets with Nikki for dinner. She felt at loose ends and thought he might be as well with Christine gone so long. He misses her and regrets not joining her in Hong Kong. He worries that the decisions they made might lead to the end of their marriage. Nikki can't believe things had gotten so bad. Part of him wants to hop on a plane to HK but the other part worries that if he goes he will only find out that the marriage is dead.
Nick and Sharon are escorted to the DA for questioning. They aren't happy that their trip was postponed for this. They want to clear up this misunderstanding ASAP. The DA is happy to oblige and produces the coffee bag filled with Extasy that Carter/Matt planted in Crimson Lights. They realize the coffee is theirs but they've never seen the drugs. Sharon suggests that someone must have planted it but the cop mentions that Jordan implicated Nick on his death bed. They're shocked and confused. The DA clarifies that Jordan mentioned Nick and Crimson Lights. They claim he must have been referring to another Nick. The cop wants to arrest him right then but the DA stops him and excuses him from the room. Nick thinks the cop has it in for him. Sharon tries to see things from the DA's point of view but Nick only gets more annoyed. The DA won't take it any further tonight. Nick is annoyed and presses him to either arrest him now or let him go. He tells them that they should stay in town but Nick won't have it. Get their act together by the morning or he'll hear from Nick's attorney. The DA tells the cop later that they must tie everything together perfectly before moving forward. The DA doesn't believe Sharon is involved but is not sure about Nick. Sharon is sure it will work out but Nick is bothered by the whole situation.