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1-26 of 26
- A spy scandal erupts after a Vancouver drug smuggler (Tracey) acquires sensitive information about a local drug squad and tries to cut a deal for himself.
- Edward Forrest has begun his surveillance on Lee for Mary. Lee, cheating on his wife, has a mistress who wants her brother to kill Lee's wife since Lee says that he can't leave her. Mary later learns the brother is a local leader in the Asian gang, the Red Eagles. Jimmy has his ATM network in place to start his money laundering business. Jimmy decides to reward Mike, who saved his and Ronnie's life, as the money transporter for the ATMs, this against Ronnie's better judgment. Tina, Mary's new informant at the Chickadee, is getting cozy with Jimmy's banker, John Hogarty, much to Jimmy's delight, Jimmy who will now have some leverage in his banking dealings. With other business, Randy Bingham, a stock broker, approaches Jimmy with a business problem: gun shipments. Jimmy passes this information to Mary in exchange for information on the club attempted shooting. Ted and Deakins' alliance with the DEA deepen. The DEA contact man, George Williams, and Ted want to conduct a reverse sting on Jimmy, but Deakins feels he doesn't have enough time in the job for that tactic to be effective for his own purposes. He wants whatever done to ensure Mary doesn't get his job, so they look into wire-tapping Mary's apartment. However Ted plans on double dealing against Deakins and Mary, while Mary plots against Deakins and Ted. Mary meets with James Mallaby and Dick Royden, two bigwigs with CSIS, about her career advancement to CSIS and Deakins' job. Royden wants deeper intelligence regarding the US spy system in Canada. He later confides to Mallaby that he doesn't feel Mary is the appropriate candidate for Deakins' job.
- Mary thinks there is another mole in CSIS who tipped the Red Eagles as to Lee's helping CSIS. She takes action by asking Vancouver Homicide to take charge of the investigation, taking CSIS and the possible mole out of the investigation picture. She also requests the telephone records of the half dozen or so possible moles, all of them high ranking officers. Most are cooperative, except for Deakins, who complains to Mallaby, who further tells Mary to desist. She does, but not before she learns from Homicide that a telephone call was made from Deakins' telephone to a Hong Kong police commissioner the day before Lee was murdered, the commissioner in turn who telephoned Donny. Jimmy is facing increasing problems with the Disciples. Ronnie is certain it was the Disciples who slashed Mike's throat and stole the $750,000. Jimmy gets his network, including Desjardins and a couple of his uniform buddies, to look for the culprits and the money, with a $500,000 reward. Many of Jimmy's contacts are backing out of deals with Jimmy because they fear retaliation from the Disciples. And Ronnie wants to hit back at the Disciples. Jimmy and the rest of the gang want to make sure first that it was indeed the bikers before doing anything. After Jimmy gets confirmation from Mary that it was the bikers that hit Mike, Jimmy confronts Dante, who denies everything. But Jimmy strikes a deal with Phan to hit the bikers' money laundering operation. Through all this, Francine lends emotional support, but who is also concerned for Stella's safety. On other business, Jimmy takes a meeting with Karl's marijuana supplier, who is actually Williams' undercover DEA operator. Martin learns from Katarina that a Canadian research scientist may be illegally selling seed patents to American and Chinese businesses. After talking to his wife Casey, Mary arrests Bingham and convinces him to provide her with info on his gun-running connections. Jimmy agrees to Mary to work with Bingham, he only doing so since she provided information of Mike's hit.
- Tensions mount at the club between Tina and Sweet as Sweet doesn't like Tina's territorial attitude with clients, especially since she is the new girl in the club. However, Jimmy backs Tina as he wants her to uncover information on one of those clients, Jimmy's banker, John Hogarty. Ted meets with Williams of the DEA and agrees to hand over his files on Jimmy in exchange for meeting Williams' undercover operator on the sting on Jimmy. Mary finds out that the attempted hit on Jimmy was by the Vietnamese, who they blame Jimmy for stealing business. Jimmy initially doesn't believe Mary when she tells him as he has had good relations thus far with the Vietnamese, but later figures it is Phan's former supplier who ordered the hit. Phan, in turn, promises Jimmy that he will deal with the situation if that is indeed the case. Instead of cash, Bingham offers Jimmy a stock offering in exchange for transferring the gun shipment. Mary, who needs more time to implement a plan against Bingham, asks Jimmy to accept the deal, Mary and OCU who will back up Jimmy's payment if the stock is worthless. Jimmy and Ronnie get an offer to buy the club property for $10 million from developers who want to build a $300 million block long development. Ronnie in particular adamantly declines the offer. Mary and Ted's surveillance team apprehend Lee. Mary offers Lee a deal - he work undercover against the Red Eagles and he doesn't go to jail. He agrees. Stella is feeling trapped at home with Francine, and Maxine suggests to Jimmy that he bury the hatchet with Francine to make Stella's home life better. Jimmy does so, but Francine doesn't realize it is solely for Stella's benefit. This cease fire between Jimmy an Francine is short lived as Stella runs away from home and shows up at the club. When Francine calls, Jimmy is able to placate her by offering to have a family breakfast the next morning.
- Lee starts to provide information to Mary while he continues his association with the Red Eagles. He tells Mary that the Red Eagles are planning to kill a Chinese dissident. Ted and Deakins are worried about Mary's turning of Lee, as it will expedite her move to Deakins' job. What's more, Mary will be able to tie Lee's hiring directly back to Deakins. Deakins wants Ted to move faster with his DEA contact against Jimmy to thwart Mary's power play. The DEA thinks the best way to get Jimmy is through the club. Mary's upper hand may be short lived as Lee is executed by Donny, Lee's girlfriend's brother and his contact with the Red Eagles. While doing their surveillance, Mary and Martin witness the execution. Katarina informs Mary of a big meeting to take place between some Chinese and American businessmen, the nature of the meeting is as yet unknown. Bingham asks Jimmy to move another shipment of guns, an act which would help Mary. However Jimmy will not help Mary out unless she provides information on Colin's murder. All she is prepared to tell him is that the bikers are indeed involved, which is not enough information for Jimmy to help Mary out. The Disciples - the bikers - get to Jimmy on two fronts, by squeezing him out of the ATM business in Vancouver and by taking over Jimmy's growers on Vancouver Island. Ronnie thinks that they need to exert a little pressure back onto the bikers or else the bikers will walk all over them; this stance is reiterated by the Vietnamese. Ultimately, Jimmy may have to strike a deal with the Disciples. Karl, one of Mike's old prison mates, wants to start supplying A-grade marijuana, which may solve some of Jimmy's supply problems. The OCU is tailing Mike on his cash runs. Mike is doing things the old-fashioned way, carrying the money in a guitar case. On one of Mike's cash runs, the bikers slash his throat and steal the guitar case. Mike manages to stumble back to the club seriously injured. At the club, Hogarty shows his weakness for Tina when he gets taken down by one of the club's bouncers. On the domestic fronts, Jimmy is softening with Francine, while Mary wants a little distance between herself and Adam, against who she obtains a restraining order. And Ronnie and Sweet hit an impasse when Ronnie refuses to let Sweet meet his mother because Sweet is a stripper and black.
- Jimmy's gang, with help from the Vietnamese and Desjardins, plot on how to hit the Disciples' money laundering business, Jimmy only wanting to scare them a little with no one getting hurt or killed. Tina secretly overhears the plotting. However, the Vietnamese end up shooting the money courier point blank. Mary meets Flannegan, Forrest's ex-CIA contact, who provides Mary info on Royden's U.S. ties, implying that Royden is still working for the CIA as a mole in CSIS. This could be true as Royden is coaching Deakins on how to work his way through Homicide's investigation of Lee's murder unscathed. Flannegan found nothing on any of the other CSIS directors. In exchange, Flannegan wants information on Luiz Falcone, a Mexican cocaine exporter; Mary has nothing on him as of yet. Later, they discover that Falcone is protected by the DEA. With the Homicide investigation, Mallaby wants Mary to use her influence to get Homicide to cease asking questions about who had access to files on Lee as it is causing concern in Ottawa. Although Mary says she will, she continues to work with Homicide to obtain the information she wants. She and Harvey learn that information on Lee was running rampant throughout the upper eschelon of CSIS and the Solicitor General's office. Ultimately, Mary wants Deakins suspended, either voluntarily or forcibly if need be. Martin, through Katarina's arranged party, learns that an American agri-business is planning on stealing the Canadian researcher's seed patents. Winston, Williams undercover agent, realizes that Jimmy is having him followed and thus has to be careful in communication with Williams and Altman. Jimmy is with Winston however when they and their trunk-load of weed are pulled over by police. Ronnie negotiates with Sweet on setting her up in a new stash house. Sweet, to hedge her risk, agrees only if the condo is under her name. Relations between Jimmy and Francine take a tumble when Jimmy learns that Francine has been telling her lawyer all about Jimmy's shady dealings.
- Bill and Harvey are about to be picked up by Ted's backed agents to inform on Jimmy, but Jimmy has made a deal with Bill for his silence, which includes a one-way trip to Vera Cruz. Roger Deakins, about to be replaced by Mary, is trying to wield his power over her while still in his office by demanding to be involved in all transactions with Jimmy. Jimmy refuses to this. But Ted provides Deakins with some information about what he assumes is the certain permanent silencing of Bill, which would look bad for Mary, in return for support for taking Deakins' job when Deakins himself decides it's time to go. Mike, out of prison, is back working at the club, wanting to show others that he's back in the family business in a big way, much to Jimmy and Ronnie's consternation. Mary's soon to be ex-husband Adam is demanding to know what's going on in her life, she telling him nothing. Jimmy and Francine have a continuing battle over custody of Stella. With Mary and Jimmy, he provides her with some information about Chinese gangs and a mole in her office by the name of Lee Ching. In return, Jimmy wants her assistance in his custody issues with Francine. At the end of the day, both Mary and Jimmy have problems stemming from two deaths. First, Bill is found murdered in Vera Cruz, neither side taking responsibility for it. And second, Colin, Jimmy's recently retired supplier, is shot in his driveway by who Jimmy suspects is biker gangs trying to take over his Vancouver Island territory.
- In their domestic dispute, Francine continues to use Stella as her ace in the hole to lure Jimmy into getting back together with her. Jimmy however will do anything to get sole custody of Stella. Everyone finds out that Mike was the one who ordered the hit on Bill. Due to lack of cash, Mike stiffs Raoul and Rosie, his hit people, so he accepts a dope run with the bikers to raise money. Ted gets Mary's OK to place surveillance on Mike. The run goes sour, but Mike manages to avert getting caught by both the police and Ted's men. Jimmy needs to smooth things over with Raoul, Rosie and Harvey regarding Bill's hit. Ronnie advises Jimmy to ship Mike off somewhere as he is causing problems. Mary, in order to subvert Deakins' power grab and satisfy her superiors, gets advice from Don Frazer to infiltrate Jimmy's operation with an undercover agent. From her street connections, Mary recruits Christina - "Tina" - a stripper, who manages to infiltrate Jimmy's operation by getting a stripping job at the club under the stage name Sapphire. Back at the OCU office, the wire room finds out about an arms shipment to Africa that is tied to local broker, Randy Bingham. Jimmy advises Mary to scare Bingham into thinking the police know about his operation. Jimmy assists Mary in doing so. The wire room discovers that Jimmy and Mary's ploy worked just as Jimmy predicted.
- Using an outside long-time contact, Mary tries to set-up a comprehensive wire tap on suspected mole, Lee Ching. Both Mary and Jimmy are respectively expanding networks outside of their organizations. Mary recruits Singh, a money launderer, with threats of jail time if he doesn't cooperate and become an informer. And Mary's recruitment of Tina is thus far proving to be useful, Tina who has successfully infiltrated the club. It helps that Jimmy has a thing for Tina. Jimmy is closer to setting up his ATM network as a front for laundering money. He also sets up a new partnership with a Vietnamese gang - a new marijuana grow-op and supply situation. Meanwhile, Deakins and Ted continue their alliance against Mary. They decide to enlist the help of a contact in the US DEA, who they explicitly tell their objective of discrediting Mary and stop her attempt to take Deakins job. Their plan is to entrap Jimmy in an illegal operation. This would be all the better is Jimmy is arrested in the States. On the domestic front for Jimmy, Francine visits her lawyer in the continued custody battle for Stella. Francine wants to show Jimmy that she's not going to be a push-over, but also doesn't want Jimmy out of hers and Stella's lives. Mike, who successfully completed his drug run for the biker's, is continuing to cause problems for Jimmy and Ronnie with his deceit and own substance abuse. But just as Jimmy is about to ship Mike out, Mike thwarts an attempted hit on Jimmy.
- During the traffic detainment, Winston talks the constable into confirming his undercover status solely with Altman, as he tells the constable that Jimmy has a mole in the ranks of the police. Following confirmation, the constables let Winston and Jimmy go. Later, Altman buys off the constable's silence. Although Winston and Williams are somewhat concerned about too many people, namely the constable, knowing what's going on, Altman talks Williams into taking the risk of continuing with their plan as it would take too much effort to set up another sting operation. Ronnie warns Jimmy of Winston, who Ronnie does not trust. Later, Jimmy does take possession of Winston's first delivery. Following the Vietnamese killing of the Disciples' courier who turns out to be Dante's nephew Nick, Jimmy figures that it would be a good idea to place a little distance between himself and the Vietnamese, Phan from which who plans on laying low in Hawaii. As not to attract suspicion onto himself, Jimmy does visit Dante to offer condolences and to restart negotiations on Vancouver business territory. Mike identifies his attacker, who is a known Disciple. Because of and despite Nick's death (Jimmy also learns that the gun Nick had in his possession was the one used to kill Colin, Jimmy's Vancouver Island supplier), Jimmy doesn't want anyone orchestrating a revenge hit on Mike's attacker. However later, Mike spots his attacker in a club, and Tremblay ends the matter with the attacker. Jimmy, acting partly in response to Francine talking to her lawyer, shuts her out of family relations by sleeping with another woman. In response, Francine turns to Ronnie, who she begs to be her ally to regain her position in the family. Hogarty and Coombs convince Jimmy that owning an offshore bank is the best and safest way to hold his money. Although Sweet agrees to front the stash house, the deal falls through as one of the neighbours in the building is the head of the commercial crime squad, which scares Ronnie off. Although Deakins is forced to resign, Mary convinces him to stay on to inform on Royden, who she believes is her biggest problem in CSIS. She also recruits Altman, by dangling the OCU directorship in front of his nose, to work against Royden. Mary finally gets in contact with Tina, who tells Mary what little she has learned about Jimmy's business. Mary is unhappy with Tina's lack of information, Mary threatening Tina with deportation if she doesn't deliver. Forrest and Flannegan continue their surveillance of Falcone and the DEA and manage to install a secret camera aboard Falcone's boat. Although Mary wants to be briefed on the goings-on of Falcone before either Flannegan or Forrest do anything, Flannegan is more interested in the $1 million if he sends Falcone back to Mexico. Mary learns that Falcone's main business is a drugs for guns racket, which is confirmed when Bingham meets with Falcone and the DEA.
- The DEA begin tracking Jimmy's marijuana shipment and follow the distribution channel into the U.S. Their surveillance is so far successful, however the DEA doesn't have another large stash of weed for the next delivery and try to push cocaine instead. Winston is hesitant since Jimmy is not in the coke trade and may smell a rat, but Winston manages to at least ask the question to Jimmy without suspicion. Jimmy refuses the cocaine, which leads to Altman wanting to move on Jimmy's people in the States immediately just in case the delay causes an issue. Tina overhears Jimmy's plan for storing his money offshore, but the lack of detail she can provide is irking Mary. Later, Tina manages to steal Hogarty's briefcase, but needs Mary's help in getting it unlocked. Mary asks Flannegan to dig deeper and Bingham to provide information into the workings of Falcone and see if his association with the DEA is official or unofficial. Bingham had no idea the DEA was involved. Mary has to remind him that he is working for her, and no longer for his own business. Mary needs Jimmy's help in the guns shipment. With this deal, Flannegan wants and gets Mary's assurance that he will get first shot at Falcone once the deal is completed. Jimmy gets a tip on some upcoming government ferry contracts and possible inside connections to bid successfully. In addition to Deakins' assistance, Mary recruits Katarina to help her go after Royden. Katarina is successful in her initial Royden related task. Mary also confirms support from Senator Dugay's office against Royden. Martin confronts a Canadian seed patent research scientist and tries to convince him to work for the OCU in a win-win situation. Jimmy and Dante meet. Jimmy offers Dante a deal on the possible money laundering through his soon to be acquired offshore bank, in return for sharing territory on the ATMs in Vancouver. Jimmy also offers Winston's cocaine to Dante. Mike and his business partner, Red, negotiate to buy a competing nightclub.
- Because of the large amount of money required and the fact that he really wants it to happen, Jimmy uses his shipping company as collateral for purchase of an offshore bank, the First National Bank of Ireland Bahamas Branch. To throw Mary off the track, Jimmy later agrees to work for her in handling Bingham's shipping deal in return for her assistance in his ATM problems. The DEA sweeps in on Alex Morgan, Jimmy's distributor in the US. The DEA forces Alex to work clandestinely against Jimmy, specifically to get him into the US. Senator Dugay's office confirms Mary's fears regarding Royden, but the Senator, working solely through her aide Roxanne Jameson, orders the investigation against Royden go underground. Ultimately, the senator and Roxanne want to turn Royden rather than expose him, a direction Mary does not support. With the sting against Royden, Mary recruits an inner circle of Kiniski, Katarina and Deakins, the latter totally under duress. Mary sets Katarina up with a fake personal history and business front, under which Royden later tells Katarina that he is planning on moving to Vancouver to head the Asia-Pacific operation of his company, namely CSIS. This information is confirmed by Deakins. All the while, Altman continues his search for information on Mary's dealings, and does find out about her connection to the senator, Mary's work against Royden, and Royden's plans to move to Vancouver. However Altman shows a personal side of himself that he probably would not like the OCU and CSIS to know about. Based on Ronnie's concerns, Jimmy tests Francine's loyalty to the family, a test she passes with flying colors. Jimmy also continues his mistrust of Winston. However Winston quickly notices the tail Jimmy has placed on him. Mike and Red's deal to buy the club falls apart when they discover Ray was deep in debt and tries to run off with their money. Despite the best efforts of Ray's mother Joanne, Mike and Red manage to get their money back from Ray. Sweet continues to negotiate with Ronnie and Jimmy on the stash house arrangement. Despite warnings, Phan decides to stick around Vancouver instead of the original plan of laying low in Maui. This situation gets worse when Dante kidnaps East Side Johnny, threatening Jimmy of Johnny's torture in order to find out what happened with his nephew's hit.
- Dante does kill Johnny, but Ronnie and Jimmy aren't sure whether he talked before his death. Phan, Johnny's cousin, wants to retaliate, this against Jimmy's wishes, but Phan manages to enlist the help of Tremblay in his scheming. Jimmy and company are cautious about what Dante might do, and as such, Francine and Stella move back in with Jimmy. Ronnie also enlists Sweet to act as a buffer between Jimmy's gang and the Disciples since Sweet is old friends with Dante's sister, Rayann. Morgan convinces Jimmy to go to the States under the pretense of renegotiating their contract, he planning to do the trip with his reunited family. Meanwhile Ted finds out from his source, Morley, that Royden's plan does not include a promotion for him. As Royden doesn't know that Ted knows, Royden asks Ted for help against Mary. Since Mary finds out Royden's grand plans, she shreds her informant files. With help from Katarina, Mary gains access to Royden's communications records through his cell phone. However, Katarina is not totally safe as Royden rifles through her purse without her knowledge. Mary's battles with the senator and Roxanne about how to handle the Royden situation escalates to threats from both sides. Ultimately, Royden, wanting the informant files, threatens Mary with exposure of Jimmy's relationship with the OCU, which she in turn must tell Jimmy for his protection. With Michael's new club, he faces territory battles with the Disciples, who use old fashioned measures to slow business into the club.
- Jimmy and Mary are each facing major crises, both surrounding one individual, Dick Royden. Jimmy risks being exposed as part of OCU's intel network, but he doesn't know by who. Mary refuses to tell Jimmy who it is. If Jimmy goes down because of it, his entire team goes down with him. He calls upon his inner circle, specifically Desjardins and Coombs, to find out who, and will pay any cost for the information and the ultimate disposal of that person. He also stashes a major amount of cash just as a precautionary measure. While his inner circle deals with this issue, Jimmy decides to take Francine and Stella to Seattle on a family vacation, unbeknownst to him that the Seattle meet is a sting against him. During Jimmy's absence, Sweet learns that Dante does think that Jimmy was at least partly responsible for Nick's death. Although he knows that this is not what Jimmy would want, Ronnie wants Phan to take out Dante to get rid of those tensions. Mary needs support from Ottawa to expose Royden as a mole, something hard for her to come by, this before he becomes head of CSIS Asia-Pacific. Mary's team discovers that Royden has the OCU intel network list, and it's just a matter of time when he places the names on the list to the actual people, including Katarina. This not only means that the entire network risks being exposed, but that Mary will lose her job and cannot offer any protection to the network. Royden has a particular interest in Randy Bingham. Mary warns her intel network of the situation and tells them to "disappear" at least for a little while. Ultimately Ottawa relieves Mary of her duties in the Royden investigation. Mary decides to take desperate, drastic measures: let it slip through the back door to the US authorities that Royden's cover is exposed. Forrest, who ends up being the informant, finds out that Royden is only one of several agents the US has undercover in Canada. Jimmy's team discovers Royden's name just as Mary obtains direct evidence to arrest Royden on spying. Before they can arrest him, Mary and Kiniski, along with Katarina, discover Royden's dead body, Katarina who admits she was going to kill him but that "someone beat her to it". Meanwhile in Seattle, Jimmy, who is at the meet with Morgan, realizes that the meet is a sting operation although the DEA doesn't yet know that he knows. Holed up in bathroom, Jimmy calls Francine and Stella to say his tearful goodbyes before what he sees as his ultimate demise.
- While Mike is in custody, Jimmy manages to make it across the border back into Canada undetected. He temporarily holes up in his summer house, where Raoul has brought his niece, Lorna, as an assistant, much to Bob and Jimmy's chagrin. Ronnie puts pressure on Hogarty, who Ronnie suspects was planning to run off with the money. Although Hogarty swears that he will clean up his act, problems arise when he is suspended from work which means that he no longer has access to the money. Ronnie also has problems with Francine, who accuses him of trying to place a wedge between her and Jimmy. She and Stella also face issues of reporter and FBI harassment. Boudreau temporarily posts Mary to the head of the CSIS Asia-Pacific Region, which does not sit well with Mallaby. The working relationship between Mary and Boudreau goes smoothly, but she manages to keep his romantic advances at bay by bringing up the fact that he's married. With the FBI investigation, Weathers has only circumstantial evidence to implicate Jimmy in the Seattle shootings but has no reason to doubt the testimony of the DEA. However Mary and Ted imply that without a gun as evidence, the FBI cannot be sure that the bullets came from Jimmy's gun. Weathers, Mary and Ted decide that they should raid the Chick-a-dee partly as a front to be able to plant bugs in the club. But Mary also tries to get a hold of Jimmy regarding the gun and the ballistic evidence it could provide to clear his name. Before Jimmy leaves the summer house to a more permanent hiding place, Ronnie and he meet to discuss money issues, problems which are mounting with the ATMs, and Jimmy gives the gun to Ronnie to give to Mary. But before Jimmy can take off, he, at the last minute, decides he needs to go back to Vancouver to deal with some tense issues surrounding Dante and Mike. With the gun imminently in her hands, Mary has it out with Weathers regarding his investigation and about his dealings in Canada.
- On the DEA sting in Seattle, Jimmy knows he has no chance to escape so decides to give himself up. Against Altman's wishes (he who is also in Seattle with the DEA), the DEA however has other intentions, namely to take Jimmy out for good and decide to shoot him under the pretense of Jimmy being armed and dangerous. In the process, the DEA shoots Morgan, shoots and kills one of their own in a friendly fire situation, shoots and kills an innocent bystander and allows Jimmy to escape into the night. Because of the situation, Altman heads back to Canada and warns Williams not to expose him. So Jimmy is on the run in Seattle. Meanwhile, the DEA pick up and detain Francine and Stella in their hotel room in Seattle. The killings hit the local news with the implication being that Jimmy was the perpetrator and is on the loose in Seattle. With Royden's death, Mary needs to remain objective and enlists Detective Ogawa with Homicide to lead the investigation. With both situations, all the players are spinning the "facts" for their own benefit. The DEA, although realize the truth will eventually come out, decide to implicate Jimmy anyway in the FBI investigation in the hope that their ultimate goal of Jimmy being dead will be achieved by that time. Jimmy's men back in Vancouver use the club as the central planning point to rescue Jimmy. Michael hatches a plan, and although she previously intends to bail on the entire family, Sweet offers to be the primary pick up person in the US. Coombs works on getting Francine and Stella released. Like a vulture, Dante circles smelling Jimmy's downfall. Eventually, as Jimmy approaches the border, Michael takes one for this brother and acts as a diversion to the border patrol which allows Jimmy to jump the border fence. Back with the Royden situation, Mary shields Katarina from Ogawa's investigation, Katarina who saw a room service waiter in the hallway before the murder. Ogawa learns that "Richard Royden" was an assumed name and thus they have no idea who he really was. Mallaby chastises Mary for keeping him out of the loop in the undercover investigation, implying her career with CSIS is over even before it's begun. However Daniel Boudreau, the CSIS Inspector General, has other ideas. He praises Mary for her work with Royden, and implies she is first in line for the head of the CSIS Asia-Pacific job as well a wanted sexual diversion for him on his trips to Vancouver. Mary does not dissuade his sexual advances.
- Jimmy, hiding out in the Chick-a-dee's basement, continues his sexual dalliance with Lorna, which started at his summer house. Both Ronnie and Bob are concerned about Jimmy's safety because of it. Indeed, Lorna does whatever she can to be with Jimmy, even if it compromises his safety. Ronnie suspects the OCU may have bugged the club during the raid, and does indeed find the place wired and uses it to his advantage. Tensions escalate between the Disciples and Mike, who arms himself with a small arsenal. Major violence is about to erupt between the two when the OCU unwittingly stops it by raiding The 25, Mike's club. Francine continues her rantings against Ronnie, who she claims is stopping her from seeing Jimmy. She needs familial support at this time as Stella has been kicked out of school because of Jimmy. And amidst the turmoil, Sweet announces to Ronnie that she's pregnant, Ronnie's happiness at the news which relieves Sweet. Meanwhile, Kiniski gets the ballistic report back from the gun supplied by Jimmy; he discovers that the gun's firing mechanism was disabled and had not been fired in the time frame of the shootings in Seattle. Behind Weathers' back, Kiniski manages to interview Morgan who tells him the truth behind the gun. Although he is not made privy to all the information, Altman does warn Williams that the DEA story will not hold water for much longer. Williams threatens Altman that he too will go down if the truth comes out and tries to persuade him that taking out Jimmy is the only solution. But one piece of welcome information that Altman receives is that Mary is recommending him as head of the OCU. Unfortunately for the OCU, Morgan passes away before Coombs can get an official statement from him. But Kiniski and Coombs manage to trace Jimmy's gun back to the DEA. Rather than face the music, Williams decides to commit suicide. Knowing they no longer have a case against him, the FBI drop the murder charges against Jimmy, who comes out of hiding.
- One of Katarina's girls, Julianna Vejzna - a Romanian national - is being extorted by an Immigration official, Robert Bergen. Mary tries to use this situation to her advantage by exposing Bergen and using him as part of her intelligence network. In catching Bergen in this extortion, Kiniski places an audio and video surveillance in Julianna's apartment. However, getting Bergen to cough up useful information is difficult for Julianna to achieve. Mary is asked by the Defense Department to intervene in an exposé on faulty military vehicles being written by journalist Martha Kopps, who happens to be an old school colleague of Mary's. Martha refuses to compromise her story, she stating the Defense Department is aware of the problem and is doing nothing to resolve it. Despite help from Mary, the Defense Department does get to Martha's publisher stating that the story needs to be quashed for national security purposes. This places a strain on Mary and Martha's friendship. Altman is also facing strain, which he admits to his therapist manifests itself in thoughts of suicide. The strain also physically manifests itself in acting on his homosexual thoughts. It's back to business for Jimmy, who is looking for a new distributor in the US. Michael approaches Winston for this role, although Jimmy, Ronnie and Bob are all suspicious of Winston, who is still clandestinely in contact with Altman for funding this work. Based on some suspicious past history they uncover about Winston, they decide to watch him. When they see Altman's surveillance team at their meeting, Michael and Bob end up taking Winston out. Jimmy is also trying to finalize the offshore banking deal, after which he decides to give up the ATM business to Dante. Despite a still drugged out Hogarty who needs to front the deal, Jimmy and his crew have a smooth first meeting with the bankers. However when Jimmy faces possible extradition for drug charges in the US, the bankers become concerned about the deal and back out. But as hard as the bankers push Jimmy, Jimmy successfully pushes back harder and gets the deal done. On the personal front, Jimmy offers a persistent Lorna a job at the Chick-a-dee, as he recognizes that she was an integral part in his rise from hiding, but he is still concerned about her infatuation with him, especially with Francine back in his life. And Francine and Jimmy look for a new school for Stella.
- After a supplier sells to the competition, Jimmy engineers a complex plot to punish him. Meanwhile, a police informant learns of an incipient DEA attempt to kidnap Jimmy. At the request of the inspector general, Mary investigates a Chinese dissident involved in a homosexual affair with a married cabinet minister.
- The OCU has Dante's place under surveillance. Danny manages to obtain Dante's security code, which the OCU uses to break into his place to photocopy all his secret files. Desjardins learns directly from the DEA that they are collecting intelligence on Jimmy, implying that they are planning on nabbing him regardless of if the Canadian government orders his extradition to the US. They also learn through Mary that the Attorney General is also after Jimmy. Although Mary offers some protection specifically from the Attorney General, Jimmy still feels he needs to protect himself and moves Francine and Stella into Ronnie's apartment at the club. Based on a suggestion from Evans, Jimmy and Ronnie buy out Hogarty as lead for the Bahamas bank, a deal too good for Hogarty to pass up. Mary is asked by national security to monitor the Blackmire Group regarding corporate tax evasion. The Blackmire Group is an association of resource companies in Canada and the US that move their monies as to avoid paying taxes. Beyond regular electronic surveillance, Mary includes Julianna acting as an escort at the Backmire's meeting in Vancouver. Mary learns that Blackmire's chair, George Browne, is an ex-CIA assistant director and that the group's ultimate goal is to have a unified Canada/US, primarily to secure precious water rights. Making it look like a simple robbery, Francine steals Lorna's house key and breaks into her apartment; a distraught Francine discovers evidence of Jimmy and Lorna's affair.
- Jimmy is facing increasing pressure on all sides. He does end up selling many of his illegal businesses to Dante, placing all his eggs into the one basket called the Irish National Bank Bahamas Branch. Jimmy figures that if he needs to leave the country, all the other players in town will be gunning for such business anyway putting Ronnie in the middle, hence the reason for going more legitimate with the bank. The DEA is closing in on Jimmy, and Mary is unable to guarantee safety for him as the Attorney General, who is proceeding on extradition charges, is not answering her calls. Jimmy, who originally was thinking about a quick departure out of the country if either the DEA or the Attorney General were going to force him out, changes his mind and decides that no one is going to push him out of his homeland. However Mary manages to strike an eleventh hour deal with the Attorney General based on new information, namely that Evans is meeting with the Blackmire Group to arrange for money laundering services through Jimmy's bank. The deal Mary negotiates is that Jimmy will become a registered informant - which means that his identity will still remain confidential but he may be required to testify in the future - if he agrees to report all money movements of the Blackmire Group through the bank. Otherwise, Jimmy will face extradition. However Mary can't get through to Jimmy since a pissed-off Jimmy is not taking her calls. Mary decides the only way to get to Jimmy is to arrest him. The timing of the arrest coincides with the DEA ready to nab Jimmy. Desjardins learns however that the people purporting to be DEA are just bounty hunters who are trying to get Jimmy across the border for the DEA. Regardless, Mary and the police get to Jimmy first. Although not totally happy with the Attorney General's deal, Jimmy agrees. Thus the bounty hunters are left empty handed. Meanwhile, Julianna successfully infiltrates the Blackmire Group, and requires legitimate papers, including a Canadian passport, to continue with her ruse at Blackmire. Although Mary and Kiniski think that Julianna will run if given a passport, they also figure that her relationship with Browne at Blackmire is short term and that she will ultimately need her connections with CSIS again; therefore, Mary decides to issue her requested passport. And Hogarty comes back to talk to Jimmy about what he sees now as an unfair deal.
- The turf war is elevating as one of Phan's men is found dead. Everybody suspects it is the Americans - fronted by Jordan and Raymond - who want to stir up the trade in Vancouver. Mary wants Jimmy to take quick action to calm things. He gets together with Phan and Dante to discuss strategy. Jimmy convinces them that retaliation is not the preferred action. Jimmy decides to bring the Americans, specifically one of their head men in the actual drug trade, Pete, in for a frank discussion. Altman learns from MI5 that Jordan specifically has done similar work before in Britain with seeming connections to the American military. Lorna is unnerved by Francine's visit, Francine who later tells Jimmy that she will not allow all she's worked for go to whoever Jimmy's latest bed partner. Julianna seems to relish her role as Mary's inside person with Blackmire and she provides valuable information regarding the company and Browne. However she is becoming reckless in her approach, which frightens both Mary and Kiniski. Browne wants to buy her contract from Katarina, marry her and provide her with a new identity. The CIA discovers the existence of Julianna in Browne's life and asks Mary to arrange for Julianna to become an informant for the CIA. Not telling the CIA that Julianna is already their informant, Mary decides to stage the recruiting of Julianna, telling her to say that she will do it but report only to Mary and CSIS. In doing so, Mary can control what information goes to the CIA. Julianna's willingness to do the job takes a 180 degree turn after Browne beats her up following an argument. Mary and Katarina need to talk her into continuing her mission despite her fragile state of mind. Jimmy learns more about Blackmire's banking through Evans. On the business side, Ronnie is worried that the bank may become a problem if they deal with a nefarious group such as Blackmire. Jimmy decides to send Coombs to the Bahamas to to oversee his interests in the bank.
- Based on Mary's information regarding Blackmire, the Prime Minister's Office shows interest in the case, but Cleary wants to meet with Mary's informant - Julianna - to verify her credibility. Although Mary and Kiniski are wary about setting up such a meeting, they do so regardless, but do not make it face to face, and coach Julianna not to divulge the entire truth, especially her relationship with Browne. Following this meeting, Julianna can tell that Browne knows something and she needs to quickly get away. Mary realizes that she talked to the wrong people or person. Ronnie's cousin, Freddy - Jimmy's distributor in the east - is in Vancouver meeting with Dante and Phan about them taking over Jimmy's weed business. Because Jimmy has frozen out the Americans on the weed trade, the Americans have moved onto pushing high quality and cheap coke. The alliance of weed dealers decide to continue with this approach, thinking that it will either send the Americans packing or push the problem of their existence onto the local coke dealers. Jordan does not back down but rather brings reinforcements for some major action. Jordan does strike back, killing several men working within Jimmy's alliance. The alliance goes into lock-down mode - with the exception of Ronnie, who has to support Sweet in some issue with her pregnancy - while Jimmy tries to work things out with the Americans. He does come to an agreement with Pete. And although the OCU does manage to pick up Jordan, this does not stop a hit on one of the Vancouver weed kingpins.
- The bounty hunters are still trying to nab Jimmy to take him to the US. They aren't actually bounty hunters as there is no longer any bounty on Jimmy's head. All Desjardins can find out is that they are working on a private contract. This coincides with rumors among the underworld and among the police/CSIS that Americans are moving in on the local drug trade. To stabilize the trade, Mary and Altman try and maneuver it so that Jimmy will sell his drug trade to both the Disciples and the Vietnamese, 50/50, which will be no easy task seeing as to the bad blood between the two. Based on surveillance however, Jimmy finds out that the "bounty hunters" aren't part of the American drug trade, but are somehow connected to the DEA, the nature of the connection he is yet unsure. Julianna gets deeper in with George Browne at Blackmire, almost as a renegade as she tells little to Mary before taking any action. She is trying to get the best deal for herself, playing Mary off Katarina. Mary and Kiniski decide they need to exert more control over Julianna, and Mary ultimately decides the best way is to have her on staff. With Blackmire, the FBI has been sharing intel with the CIA who asks Mary to cease her investigation since they are conducting one of their own, the nature of which they refuse to divulge to Mary. This information, although irksome to her, concerns Mary specifically for Julianna's safety. The deal between Blackmire and Jimmy's bank proceeds, this without Hogarty who has been permanently removed. Francine confronts Jimmy about Lorna, Francine's actions reflecting the depression she feels about the situation. Bob tells a dejected Lorna what's going on, Lorna who needs to leave for good.
- Duncan, one of Dante's men, is executed in a drive-by shooting. All indications point to the killers being the Americans who want to infiltrate the drug trade in Vancouver. Because of this killing and the possible instability in the drug trade otherwise, Mary urges Jimmy to broker the deal to sell his drug trade quickly to Dante and Phan, which will be no easy task seeing as to the bad blood between the two buyers. Jimmy manages to manipulate both buyers to accepting a deal. Francine walks out on Jimmy for good, taking Stella with her. She decides to enroll Stella at a boarding school under an assumed name. Because Francine has left Jimmy, Lorna reignites her relationship with Jimmy. But Francine doesn't go as far away as she says. Mary is receiving mounting pressure from Mallaby and the CIA to desist in her investigation of Blackmire. Although she tells both they she will desist, she continues the investigation due to the big payoff of information of Blackmire's money laundering through Jimmy. Jimmy is initially wary of working with the CIA but agrees if Mary can guarantee immunity from all prosecution for the rest of his life. Mary and Kiniski are also concerned about Julianna's safety from a security conscious Browne, who has fallen head over heels for Julianna. Unlike their knowledge of Jimmy, Mary and her gang are uncertain if Julianna is up for a long term game with Blackmire and if they do include her, they will need to build a tighter back story for her life.
- Under surveillance, Browne admits to Julianna that Blackmire is a front for the CIA. Kiniski convinces Mary that it best to keep this information under wraps for the time being, but they decide to bring in Julianna for her safety. Julianna has other ideas as she tries to run when Mary's team attempts to bring her in. After they manage to bring her in, Julianna admits she just needed some down time alone without having to lie to anyone. After Mary determines that Julianna can continue with her job, they proceed with Katarina selling Julianna's contract to Browne. Mary does decide to tell Cleary about what she knows about Blackmire including involvement by individuals within the government, but does not divulge Julianna's identity. Altman learns of Desjardins' connection to Jimmy and turns Desjardins into working for the OCU against Jimmy. Jimmy brings in other big weed dealers in Vancouver to strategize on how to deal with the Americans. To show some muscle, they decide to freeze out the Americans. When Jimmy learns that the Americans are definitely connected to Jordan and the DEA, Jimmy escalates the conflict to an all out war. On personal fronts, Jimmy and Francine argue about Stella's schooling situation. And Ronnie drops an informational bombshell on Sweet.