Ray and Nikki make a sex tape, with Ray pretending to be Emmit and Nikki pretending to be a secretary, sending it to Emmit's house in order to blackmail him for $100,000. Instead, Emmit's wife Stella sees the tape. She flips out and leaves Emmit, taking her mother with her out of the house and refusing to speak with him. Emmit is distraught that Stella has left him.
Sy is threatened by Varga, Yuri, and Meemo after Yuri and Meemo tell Varga that Sy spoke to a police officer (Winnie Lopez). Sy denies that the meeting had anything to do with them, trying to explain about the car accident. Varga intimidates Sy by rubbing his penis in Sy's "World's Best Dad" mug and forcing him to drink from it.
Later, Sy meets with Widow Goldfarb, who offers to buy the company from them outright. Sy lies and says that Emmit has been thinking about going into philanthropy full time, suggesting that if the offer is good enough, they'll definitely consider it. Sy gets a frantic text from Emmit and leaves, meeting him at Emmit's house. Yuri and Meemo follow Sy, seeing him leaving
Once there, he sees that Emmit is a wreck and Emmit explains what happened with Stella. He is angry that Sy didn't take car of the Ray and Nikki situation like he said he would. He gives Sy permission to go "shackles off" in order to shut them down and fix the situation. Sy tries to talk to Emmit about Varga and Goldfarb, but Emmit is too distraught and distracted to hear any of it.
Emmit meets with Varga separately and Varga suggests that Sy is working with Ray to usurp the company. Emmit is uncertain, but agrees to talk with Sy. While at work, an IRS man comes to meet with Emmit, telling him that his recent withdrawal of $10,000 (which was actually made my Ray) triggered an alert and that now Stussy Lots has been randomly selected to be looked into. He says he will be moving into the offices to look into the book and interview people. After he's shown to his office, Emmit goes to Varga in a panic, but Varga is calm, saying that they'll just show the IRS the fake books.
Elsewhere, Ray proposes to Nikki while making the sex tape. They discuss what they will do next, since the sponsor for bridge fell through. They go tuxedo shopping for Ray. Privately, Nikki gets a phone call from Sy and tries to convince him to pay them $200,000 in exchange for convincing Stella that the tape was a fake. Sy tells her to meet him at a Stussy parking lot.
When Ray goes home after tuxedo shopping, he is approached by Winnie and Gloria, who have pretty much pieced together that Ray hired Maurice to rob Emmit, but just need proof. They bring him in to the police station to interview him, but the new chief angrily calls them out. He insists that Gloria stop investigating, because her story about what happened is one that she can't prove.
Once she arrives, she and Sy have words but are interrupted by Yuri and Meemo. Varga's two cronies take Nikki aside and, to Sy's horror, beat her viciously with a tire iron. Horrified, Sy leaves her there. Nikki manages to get herself into her car and drive herself home, where Ray later finds her badly bruised and near unconscious in the bathtub.