The episode begins with Holmes doing a touch up on one of his tattoos. Watson is surprised to learn that Holmes has that machine, and also that Holmes is ambidextrous. She tells him that in a few days, Holmes will be completing a year of sobriety and she thinks that they should celebrate it. Holmes thinks that there is nothing to celebrate because sobriety is a state; one is either in it or out of it. Watson doesn’t argue. At that moment, Alfredo calls and tells Holmes that he needs his help. Next, it is seen that Holmes and Watson arrive at a house to meet Ken Whitman.
Eva Whitman, Ken’s daughter, answers the door and leads them to her father’s room. They learn that Ken is Alfredo’s sponsor and he is in trouble. Ken tells them that two years ago, his daughter used a fake id to get into a club. A man named, Brent Garvey, slipped something into her drink, took her home and raped her. The next day, Eva told them everything and she also identified Brent in a line up. After this incident, two other victims came forward and Brent cut a deal for reduced sentence. Ken says that Eva underwent therapy and finally managed to be ready to lead a new life. He says that few months ago, they received a video in mail. It is a video from the night Eva got raped.
The sender wants Ken to transfer 10k to his account and also asked him not to go to the cops or try identifying him in any way; else he would post the video online. Ken tells him that he transferred the money to the account. Few months later, the guy asked for more money, and Ken sent it to him. A few days ago, Ken received a third demand and he could not take it anymore. That is when he spoke to Alfredo and learned about Holmes. Holmes assures him that they will find the guy and destroy every trace of this video. Later, Holmes and Watson stake out the house of Charles Augustus Milverton. Holmes tells Watson that a team from London traced the account number to this man, on this address. Holmes tells Watson that they first need to find Milverton’s accomplice and then destroy the video.
They see Milverton leaving the house. Holmes breaks into the house and goes through Milverton’s laptop. He tells Watson that Milverton is a seasoned blackmailer and he has blackmailed a lot of people. Milverton returns and Watson warns Holmes. Holmes tries to get out through the back door, when he sees Milverton trying to enter. Watson tells him that Milverton is getting in through the front door, not the back. Holmes quickly hides. Moments later, Holmes witnesses Milverton’s murder and the murderer, who is wearing a mask and gloves, takes the laptop with him. Later, Holmes meets Gregson and tells him to watch the video. He then tells him that Garvey was arrested for sexually assaulting Eva Whitman, Tracey Bender and Karen Pistone.
He then tells him about the case and the murder, and convinces Gregson to keep it under wraps, till the time they identify the accomplice. Holmes returns home and tells Watson about Gregson’s decision. Watson hands him a ledger found on Milverton’s desk. She asks him about the killer and Holmes tells her that there is nothing much he can offer on the killer. He thinks that the killer is someone who Milverton blackmailed, but Gregson thinks that the accomplice is the killer. Either ways he needs to quickly find the accomplice before he posts the video online. Holmes decides to talk to Garvey. He tells Watson that either Garvey could be the accomplice or he could lead them to him.
They go to meet Garvey, who is lying in the hospital bed from having gotten jumped in prison, and who admits losing the tapes to Milverton in an auction because he wasn’t able to pay the fee on the storage unit they were stored in. He also tells them that he knows about the fail safe. He tells them that Milverton blackmailed him as well, and that he is one of Milverton’s victims. At home, Holmes tells Watson that Garvey’s story checked out. He also figures out that Milverton made consistent payments to a guy named Henry 8. Alfredo texts Holmes and tells him that there is someone at Milverton’s door. They track down the guy, Sheriff Duke Landers.
Landers tells him that he had a deal with Milverton, wherein he would pass some “helpful” information to Milverton, which Milverton would use to make both of them some money. He tells Holmes that he is not Milverton’s accomplice. At home, Holmes and Watson learn that Landers’ files and documents have no useful information. Gregson calls. He tells Holmes that a man named Anthony Pistone, the second victim’s father, was caught when he was trying to dispose Milverton’s dead body at a construction site. Holmes knows that Pistone too was being blackmailed by Milverton. Gregson tells him that the news about Milverton’s death is officially out. At the precinct, Pistone confesses to killing Milverton and also stomping his face in rage.
Watson calls Holmes and tells him that Ken got another email from Milverton, demanding more money. Holmes and Watson read the email and conclude that instead of exposing the vile material on the internet, the accomplice is using it for business. They think it is Henry 8. Holmes tells them that Abraham Zelna, a guy who was referred to Milverton by the Sherriff, was a fat obese guy and he was the only one who wasn’t blackmailed by Milverton. He had sued an airline company. Holmes feels that he could be a lead. Bell does a search on that name, and tells Holmes that it is a fake. The next morning, Holmes tells Watson that he managed to find out about Zelna. He says that Zelna sued an airline and accepted a ‘quick pay off’.
He did that because he knew that his fake identity wouldn’t be able to withstand any further scrutiny. Holmes tells Watson that he did a research on such nuisance lawsuits filed on the East Coast, against airlines, restaurants etc and came up with a list of people who settled for the quick pay offs. They were all fake identities, assumed by the same man. Holmes manages to find the identity of this man, Stuart Bloom, who lives in Staten Island. They go to Bloom’s house and find his rotting dead body lying in the bath tub. So, Milverton’s accomplice, Bloom aka Henry 8 aka Zelna, is now dead. Gregson feels that Pistone could have killed Bloom because he had killed Milverton and also had motive to kill the accomplice.
Holmes thinks that Milverton killed Bloom because he could smell the cat litter at Bloom’s apartment and it is the same that he smelled at Milverton’s place. At home, Holmes tells Watson that he does not want to celebrate the anniversary because it isn’t exactly his anniversary. He says that he relapsed 24 hours after he decided to stop using drugs. Watson tells him that one day doesn’t matter, but Holmes tells her that he is a man of details and this ‘one day’ matters a lot to him. At that moment, he gets Milverton’s autopsy report. Holmes looks at the picture and notices that Pistone stomped on one side of Milverton’s face, trying to get rid of the scars on Milverton’s temple.
The next day, the team questions Pistone. It turns out that Pistone met Milverton a while back and beat him up for blackmailing him. Later, Milverton made him an offer that Pistone couldn’t refuse; a piece of his blackmailing business. Holmes states that the scars on Milverton’s temple, resembled to the emblem on Pistone’s ring. That is why Pistone smashed the dead body’s temple, in an attempt to get rid of the scars. They also found out that Karen is Pistone’s stepdaughter. So, when Milverton made this offer, Pistone took it up. Now, Milverton had two partners and he had to get rid of one of them and so he killed Bloom.
They also found Milverton’s laptop in Pistone’s brother’s drawer. Holmes tells Pistone that his brother has confessed to being Pistone’s accomplice in his newly acquired business. Pistone’s brother was the one who sent Ken the last email for money when Pistone was in custody. Case Closed. At home, Joan offers Holmes an anniversary gift, a framed stanza from Robert Frost’s “Stopping by the Woods on a Snowy Evening”. The episode ends.