McGrath, a thug-for-hire, is intimidating the mostly Jewish population of the Bay Heights neighborhood by posing himself and his gang as neo-Nazis. In reality, they are being paid by Richard Hastings, an ambitious businessman who is trying to force everyone out so he can buy the land up for cheap and renovate that part of the city. A young boy who works for Greenbaum, a local merchant, witnesses McGrath commit a murder, but is too scared to complete his testimony in court, not to mention his father disapproves of his involvement in court.

Nick has Gibs pose as a victim of the hate gangs who Greenbaum takes in and has work in his bagel store. Cat discovers McGrath's plan at a local hangout and is forced to ride along on a drive-by shooting. Nick had tried scaring the thugs away from the boy, but failed to prevent Greenbaum's store from being shot up. Finally, Nick forces a confession out of McGrath, and the videotape from the store is broadcast at the dedication ceremony for the ne