Kyle questions Karen. She said she saw Regina wearing Tara’s necklace and guessed she’d been having an affair with Vikram. She went to confront Regina who admitted the affair and Karen says she snapped and killed her. Karen asks to speak to Danny.
Lacey and Jo wonder whether Karen could have sent Regina the letter. A tired Lacey mentions that her father is coming to town for her sister’s birthday party.
Alone together, Danny accuses Karen of still thinking he’s guilty of Regina’s murder but Karen continues to insist she did it. He asks why she would take Tara’s necklace and plant it in his locker to which she responds ‘who says it was in your locker?’. She then tells him to go be happy.
Eddie and Kyle talk about the case. While Kyle thinks Karen is covering for Danny, Eddie points out that if Danny has a conscious he won’t let his mother take the fall for his own crime.
Kyle tells Danny they’re holding his mother for 48 hours before deciding whether to charge her and then invites him to stay with them for the time being.
Lacey and Danny pack some of his things and he asks her if they can tell Jo about their relationship but Lacey still doesn’t want to. She suggests they tell Kyle everything about the cash, note and apartment and he agrees.
The three show Kyle the evidence and he’s angry that they didn’t tell him sooner. Kyle points out that if Karen is charged Danny have to go to his nearest kin, his grandmother in Arizona.
Danny goes to Karen and points out he can’t be happy if he has to move to Arizona and leave Jo and Lacey. Kyle shows Karen the note and the money. She says she has no idea what it is and he believes her and pleads with her to retract her confession so he can solve the crime.
Jo and Rico talk about Danny possibly having to move and Rico accidently lets slip about the necklace and Karen and that he told her dad. Jo says she doubts she and Lacey will continue their friendship if Danny leaves and Rico suggests she just has to try harder.
Lacey comes home to find her dad there. He and her mother start to bicker.
Eddie tells Kyle there’s nothing in Vikram’s financial records about the apartment and Kyle sends him to Connecticut to find out what else he can learn.
At their old fort, Danny, Lacey and Jo talk about Karen throwing away the necklace and Lacey and Jo now seem convinced of Karen’s guilt. Upset at the idea of moving away from them, Danny leaves. Alone Lacey mention her parents arguing and Jo offers to come to the birthday party for moral support.
Danny confesses to Kyle that Karen took the necklace from him and about finding the necklace in his locker. Kyle accuses Danny of being willing to take the fall for Karen and only coming forward now because he doesn’t want to move to Arizona. The two decide to try and prove Karen’s innocence.
Tess visits Karen at the jail and tells her she knows she’s not a killer and just loves her son. Karen doubts Danny knows that and remembers a time when Danny was little and heard her wishing she had a daughter instead of a son.
Jo shows up at the birthday party and when Lacey’s parents start to bicker is able to smooth things over.
Danny and Kyle check Karen’s computer and finds highly suggestive photos of the school principle Mark Tang. Danny is shocked.
Jo finds Mr. Porter making out with his daughter’s gymnastic teacher, Mitch. Jo is shocked but tells Mr. Porter that Lacey always felt the divorce was her fault and encourages him to tell her the truth.
Karen remembers talking to Danny and telling him she didn’t mean what she said about wishing she had a daughter, but Danny told her she did mean it and that she only ever loved herself. She calls him an ungrateful little brat.
Danny meets with the principle and tries to blackmail him into giving his mother an alibi. In return Tang says that if Danny tells anyone about the photos, he’ll tell people the real reason Danny was forced to leave the soccer team.
Rico runs into Danny and tries to cheer him up about Arizona. Danny tells him her knows Rico saw his mom throw the necklace into the lake and Rico tells him that the first thing he thought when he saw it was how much Karen must love him.
Lacey confronts her father and he and her mother go off to talk.
Eddie tells Kyle that the apartment was paid for by a local business account under the name Marna Inc. Also right before Regina died $2000 dollars was withdrawn from the account, the same amount that was sent to Regina. Kyle wonders if Vikram really is dead.
Danny again talks to his mother and begs her to retract the confession. He says he knows how much she loves him and that he needs that with him.
Karen retracts the confessions and Danny tells Kyle moving would be unbearable because he can’t lose Lacey and Jo. Kyle says if that’s true he owes it to them to be honest with them then about the necklace.
As her parents’ argue, Lacey and Jo talk. Lacey thanks her for telling her about her dad and says she just wants her father to be happy. The both receive a text from Danny asking them to meet him.
Kyle searches online for information about Marna Inc. and finds that there logo looks exactly like the design of Tara’s necklace.
Danny tells Jo and Lacey that his mother retracted her confession and then tells them about finding the necklace in his locker. Lacey is furious and tells him they’re done. Both she and Jo walk away.
Rico receives an email with a video attachment. It’s the recording of Lacey and Danny making out in his house.