Compromising Positions - Recap

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The episode begins with Neal meeting up with Sam. Sam says the people responsible for setting up his father and getting Ellen killed were formerly dirty cops now in high-up positions with the government. He doesn't like that Neal is so close to the FBI and eventually decides to leave. All he says is that he knew Neal's father, Neal though wants to know much more than that. Later, Neal and Mozzie talk about the meeting. Mozzie thinks they should include Peter in the process, as he might be able to help them out. Peter in the meanwhile is practicing his testimony for a trial where he is the key witness.

The trial is for a man named Delancey who attempted to poison soil with a vial of Benzene to commit real estate fraud. With the vial never having been recovered, Peter's testimony as it turns out, is the whole case. Later it is shown that, the DA handling the case is named Josh. Neal reminds Josh that he also saw the vial while working undercover with Peter. Turns out, Neal can’t be used as a witness because of his criminal past. Later, during Peter's testimony an attractive woman in the audience distracts Josh. He consequently starts flubbing questions, particularly the most important piece of testimony. Outside the courtroom Peter tells Neal what happened, he closely observed all that transpired in the courtroom. Neal wonders if perhaps Delancey found a way to get to Josh.

Later, Josh reveals to Peter and Neal that he was told if he didn't intentionally botch the trial pictures of him having sex with a woman he now knows to be Delancy's girlfriend would be made public. He wasn't aware of who she was at the time, he says trying to justify his actions. But, the lead prosecutor leaving the case at this point would be too dangerous and could affect the final outcome of the case, so the plan is to help Josh get out unscathed through this mess. The key as it turns out, is Landon Shepherd, Delancy's fixer. Just as Peter's team is discussing her she walks into the department. Landon then sits and talks with Peter and Diana, seeming to run circles around them. But Peter on his part manages to trick her into calling the mayor's office, which makes her cell phone part of the public record. Then with access to Landon's phone number the team is able to go through years of her records.

Thousands of numbers but no names, though Neal recognizes Sara's number. Sara when questioned about it tells Peter and Neal, she knows Landon well through work with her company. They plan is therefore to try and see if Sara can get Landon to incriminate herself. As a part of the plan, Sara calls Landon and tells her an ex-boyfriend, who shall be played by Neal, is trying to blackmail her with pictures of her with another man. Landon agrees to make sure he never shows the pictures to anyone. Later, Neal tells Peter he can't rule out the FBI possibly being connected to Ellen's death. He says he doesn't want to reach out to Sam unless Peter works off-books. Peter tells him he can't do it at this time. Mozzie on the other hand is able to track down the rental car Sam was driving and gets Neal a copy.

Neal tells Mozzie at this point it's safer for everybody if they keep Peter out of things. Landon in the meanwhile calls Neal, wanting to meet the next morning. The goal is for Neal to get Landon to explicitly say on tape that she wants to blackmail him for the photos. Later during the meeting Landon shows Neal the car rental invoice from Sam. He immediately tells her he'll destroy the photos. While listening from the truck Peter realizes that Landon had been following Mozzie the other night, not Neal. This means the plan is ruined. Back in the truck Peter tells Neal he completely blew it. Neal says that if what was on that paper had gotten into the FBI records Mozzie would have been in a lot of trouble. Peter says he could have removed it, but Neal asks "would you have? It would have meant going off-book".

Later Mozzie asks Neal whether there is any way to use Landon's strengths against her. The plan that is concocted is to get Delancey to think Sara is having an affair with Peter. He'll as a result want to use the pictures against Peter, but Landon will want to keep them private to preserve her relationship with Sara. Landon in turn will be so upset; she'll drop Delancey and take the compromising pictures of Josh with her. The trick will be to create pictures that make it look as if Peter and Sara are sleeping together. Later, Sara and Peter pretend to fool around, with Elizabeth watching from a chair and Neal on the balcony with a camera. Elizabeth and Neal end up walking the two through the process.

Using his alias, Neal goes to Delancy telling him Peter roughed him up and he as a result wants payback. He says Peter is still going after the Benzene and then shows him the photos. Neal is then barely able to avoid running into Landon on his way out. Then from a hiding place he's able to watch Landon fire Delancey. He also hears that she is holding possession of the vial over Delancey's head. Later it is shown in court that, Peter's testimony has been destroyed and the defense has rested. Neal thinks they might still be able to get proof of the Benzene through Landon. To stall the proceeding, Neal decides to take the stand. In the meanwhile, using Landon's phone records Peter and Mozzie are able to find a storage facility Landon uses. Mozzie then tricks her into coming down to the storage facility.

Josh on the other hand calls Neal to the stand and then leads him towards some especially lengthy testimony. Peter in the meanwhile, stops Landon outside the storage facility. She reveals that, she knew the pictures of him and Sara were staged, but played along because she respects the fact that, Sara was forced to take a side. Landon eventually agrees to back-up the FBI's story regarding chain of custody. Then while Peter talks to Landon, Mozzie is able to get the rental car invoice out of the trunk of her car. This allows Peter to bring the vial into court where Neal testifies it is the same vial Delancy had shown him. Neal testifies that he's a forgery expert, and has extensive experience with Benzene.

He then is able to prove his point by demonstrating how it dissolves ink from a check. After the trial Landon warns Peter that his association with Neal could hurt him down the road. Later, Neal finds Sam. He convinces Sam that he can help him and promises the FBI will not be involved. Sam in the end agrees to stay in touch and share information, doing whatever it takes to bring them down. Peter is shown watching from a car, and taking pictures of the meeting. The episode ends at this point.