To secure financing for his bankrupt company, Blake arranges to see Billy Waite, a notoriously underhanded oil man. Jeff continues his search for Fallon. Impatient with the progress her lawyer is making on her defense, Alexis fires Warren Ballard and retains Adam. Alexis visits Billy Waite in South America under the guise of concern about Blake's misfortunes. As she prepares to leave, the police arrive. She is arrested for fleeing to avoid prosecution and led away by the police. At an isolated religious retreat, Jeff learns Fallon is dead and that she died along with Peter DeVilbis.

On the witness stand Steven testifies he saw Alexis push Mark to his death. Furious, hurt, and still claiming her innocence, Alexis disowns Steven. Dominique offers Blake $25 million for control of his company. Stunned, Blake offers her 40% of Denver-Carrington for $30 million. Jeff sees other women in an attempt to forget Fallon, but remains obsessed with his ex-wife. Dismissing her attorneys and deciding to represent herself, Alexis takes the stand and testifies she was not wearing the cape that incriminated her. The prosecution, however, proves it had been delivered to her and was found stuffed in a trash bin behind her building. The verdict is at last delivered: Alexis is found guilty.