Crime and Punishment - Recap

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The episode opens with a dream sequence depicting Ike sitting on a desolate beach, surprised to see Mike Strauss approach and sit next to him. Ike tells Mikey he was worried about him, but Ike responds that he is fine before standing and walking into the crashing surf. Ike calls for him, finally following him into the water and diving, crossing paths with a shark before waking in his prison cell.

Elsewhere, Stevie leaves a seemingly sleeping Lily in bed. As he exits, Lily opens her eyes and catches her reflection in a ceiling mirror. Back at the prison, Arthur pays Ike a visit to let him know that Al Strauss is livid over what happened to Mike, blaming Ike for his murder and saying he deserves the electric chair. Arthur sees it as just desserts for Ike getting in business with mobster Ben Diamond, while Ike says he was desperate for a resolution with the striking union. Ike agrees that all his troubles spun out from his involvement with Diamond, and insists that he isn't going to let it break him.

Stevie and Danny discuss their father's case, with Stevie certain that the District Attorney doesn't have any hard evidence to convict Ike on. Danny is less certain, wondering aloud about what could happen if their father were guilty. Stevie tries to appeal to Danny's loyalty to his father, and asks him to lean on his friend at the D.A. office. Ben calls Stevie over, as he and Lily have breakfast on the hotel patio. He compliments the food and asks for an update on Ike, offering to help with bail should they need it. As Ben carves into his steak, he tells Stevie about how he got his nickname "The Butcher" -- he claims he came of age on the carnival circuit, working several jobs before finding his calling as a butcher. Stevie forces a smile, countering that he had heard Ben had once cut off the hands of a thieving hooker and nailed them above his bed. Ben laughs, again offering to help with bail money before 'introducing' Stevie to Lily as the two feign ignorance.

At the D.A.'s office, Ethan reads a statement proclaiming Ike's innocence to D.A. Klein. Klein sees it as a distraction, with witness Judi Silver's statement contradicting it. He burns the note, telling his staff that the information in that note does not leave that room, seeing a conviction of Ike as a chance at a bigger fish: Ben Diamond. In his cell, Ike speaks with his attorney about the strength of Klein's case against him, with Ike convinced that the entire case is a bluff to push him to testify against Diamond.

Back at the hotel, Vera is stopped by a bellboy with a note that the entire staff of 'The Gary Moore Show' had checked out. She moves on to interrupt a meeting between Stevie, Ike's lawyer and Meg Bannock to discuss Bannock's ownership stake in the hotel. Vera is standoffish at the news that her husband sold her a stake in his business, but Meg insists she was only doing it to help Ikie in a desperate time. The group argues over freeing up money from the Miramar Playa to cover Ike's bail, Vera offering to put the hotel up as collateral to cover the costs. The lawyer says that in order to do that, Ike would have to reveal who the minority stakeholder in the hotel is, information that Ike may not be quick to divulge. Stevie counters with selling off a part of the property, but Vera will not allow it. Things end on a cold note, as Vera refuses further financial assistance from Meg.

Ike visits with Vince to discuss the case. Ike remarks that he wishes he had tossed Mike's jacket into the quarry, but Vince is certain that if it had been found they would know about it. Meanwhile, Danny looks over the jacket, reminiscing on when he found it stuffed under the passenger seat of his father's car while out drinking. At the hotel bar, Vera apologizes to Stevie for shooting down his idea to get Ike's bail money. Stevie implores her to look past her pride and just take Meg's offer for a loan.

The next morning, Ben and Lily pull up to their home and he tells her to change to look presentable for a visiting Bel Jaffe. In her room, Lily thinks back to making love with Stevie, worried that Ben is aware of the two's affair. Elsewhere, Ben looks over whores presented to him by Madame Renee, who tells him of her plans to open a state of the art brothel unlike any other. Their meeting is interrupted by Bel's arrival, but it doesn't deter them from finalizing their deal. After she leaves, Bel dumps wads of cash on Ben's desk, their take from numerous business endeavors. They receive a troubling phone call, with someone from the D.A.'s office leaking to them that Klein burned the confession intended to clear Ike. Ben instructs Bel to find a way to quietly bail Ike out and kill Judi Silver.

Arthur checks in on Danny at the barber shop, where Danny reveals he's been asked to intern at the D.A.'s office over the summer. Danny is worried about the conflict of interest, and moreover is worried that his father is actually guilty of murder. Arthur tells him Ike is his boy -- he may do bad things, but he isn't a bad man.

Ike and other inmates watch a Fidel Castro press conference, learning that he has closed down hotels and casinos in Havana. He meets with his lawyer to put a plan in motion to offer to manage Cuba's hotels and casinos, thinking that Castro is hesitant to get in business with the mafia while Ike is clean, and Cuba is desperate for the cash flow. Moreover, he offers a trade to Sy Berman: the Miramar for Havana. In exchange, Berman needs to get Ben Diamond out of his hotel business once and for all.

Ike makes bail, meeting Vera in the prison lobby and the two embrace. Ike is furious to learn that Vera got the bail money as a loan from Bel, furthering the hole he is in to the mob.

Elsewhere, Klein checks in Judi Silver, apologizing to her for allowing Ben Diamond to manipulate her. She fumes silently as he instructs her to testify at Ike's trial, telling her not to dress like a cheap whore when she takes the stand the next day. Ike reminisces about his first meeting with Ben Diamond, breaking ground on the Miramar Playa. Unable to sleep, he takes a walk to the hotel lobby for a drink.

The next morning, Klein and the police escort Judi to the courthouse. At the hotel, Ike and his team meet to discuss the trial, Ike stating outright that he is innocent and the trial will force the truth to come out. They make time to talk business, specifically the issues they've run into with the cash flow interfering with the hotel's nightclub act. With the original act canceled, Ike is surprised to learn that Vera made an offer for a Tropicana-themed dance act which notable guests seemed to like. Ike begrudgingly agrees to it.

At the trial, Judi gives testimony to the grand jury. She torpedoes the D.A.'s case, changing testimony at the last second and claiming that she previously lied about Ike killing Jimmy Clayton. Even in the face of perjury charges, Judi holds to her new statement that Dandy El Haas killed Jimmy, revealing to the jury that Klein had forced her to say it was Ike at gunpoint. Later, the judge instructs Klein to drop the case if he doesn't have any other evidence save for Judi's flip-flopped testimony.

A celebration takes place at the hotel as news breaks about Ike's freedom. When Danny arrives, he still seems unsure about the new developments, acting somewhat aloof toward his father. Ike gets a phone call from Meg, who politely declines an invitation to join the celebration, so Ike thanks her for her offer of support. Ben arrives with Lily in tow, shifting the mood of the party as Ike tells him he will have his money back the next day. Ben confronts Ike on his disrespectful attitude, pulling him aside and telling him to change his tone.

Outside on the beach, Danny burns the jacket he had found in his father's car, but holds onto the leather sap that was in its pockets. At his house, Ben talks to Sy Berman on the phone, telling him they need to talk about Ike Evans the next day. Ike shows up at Judi's apartment, attempting to apologize to her but she refuses to let him in. The episode ends as the D.A. investigator watches the brief meeting at Judi's apartment from his car.