Jake and Amanda pull out of Reed's business when Jake discovers some inconsistencies in his story, but Jo accuses him of jealousy. Reed picks up a shipment of drugs on the boat while Jo is sleeping on board. When Jo discovers drugs stored in a compartment below deck, Reed assaults and kidnaps her. Sydney overhears a semi-comatose Michael babbling about his plea for Matt to change his blood alcohol results. She lays the groundwork for a blackmail scheme. Frustrated by her inability to get in touch with Billy, Alison flies to New York to surprise him. She is stunned to find him having drinks with another woman. Jeffrey is transferred to the east coast after coming out of the closet.

Reed plans to start over in Mexico after one last major drug deal. Jo knocks him overboard with a harpoon, but the boat runs out of gas. When Reed climbs on board and holds her at gunpoint, Jo is forced to shoot and kill him. She is arrested when the Coast Guard raids the boat. Alison accepts Billy's explanation about his date, but breaks up with him again when he wrongly assumes that she is moving to New York. He follows her back to Los Angeles and surprises her with a marriage proposal. Sydney presents her blackmail demands and moves in with Michael.