In his hotel room, Brad confronts Craig about his dealings with Spencer and Dani. Craig says Brad is crazy but he threatens to go to Margo. Craig stops him by saying that could hurt Katie! Brad won't give in so Craig reminds him that the charges against him have been dropped and he should move on. Brad says the old Brad would move on but he has changed! "I like being on the right side of the law. You should try it," Brad says and leaves. Craig calls Dani, who says she is willing to forget how rude he was before if he sleeps with her. Craig pulls away and reminds her she was indiscreet – and now has to leave town! He says Brad is on to their plans and she has to leave before everything is destroyed. She refuses to go. He gives her a wad of cash. "Be a good girl and run along," he says. Dani, on the verge of tears, says she won't go. Craig says he can't protect her from Margo when the truth comes out. Dani puts the money in her bag and tries to seduce him into one more roll in the hay. She kisses him and Craig leads her to the bed. Dani pulls a gun from her pocket! She says she is in charge; Craig says she can come back when the heat is off.
Carly finally pulls the whole story from Katie, who is worried she will lose Brad if she comes clean. Carly insists that if Katie tells Brad everything it will be okay. Katie asks when any of Carly's schemes have turned out the way she wanted and says she needs time to think. Katie leaves the bar. She runs into Brad in the hall; he tells her about his talk with Craig. She tries to apologize but Brad says they have to go to Margo right away. He walks away and she runs after him, trying to change his mind. The waiter offers to get her another drink but she turns him down. Carly overhears the waiters talking about a bottle of champagne to be delivered to Craig's room and hurries away.
Carly knocks on Craig's door; he convinces Dani to let him answer. She keeps the gun trained on him. "Is this a bad time?" Carly asks. Craig makes some excuses to get rid of her. When he closes the door, he says Dani doesn't have the guts to shoot him and takes the gun! He puts the gun in the briefcase as she asks if he is after Carly and Meg now. Craig insists Dani is the girl for him, gives her more money and says she has to leave. She says she will let him know where she is; he tells her not to do that, kisses her forehead and sends her away. Carly watches Dani leave from the hallway and then goes back to Craig's door! "You are one sick man," she says and stomps into the room. She confronts him about sleeping with Dani; Craig skirts the issue. "How do you live with yourself?" she asks. The champagne arrives and he pours two glasses. He brings up Jack's new marriage and says it is time for Jack – the morality police – to be removed to her past. Carly says she has moved on and leaves.
At Lily's Luke returns home and finds Brian there. Brian says Lucinda had a bad night as Luke snarks at him about being a good husband. Brian says Luke's little jabs and his attitude are only hurting himself! Brian pours coffee and reminds Luke that he got himself kicked out of school, he is the one who started drinking and he is the one who made Noah leave him. "There are people who would help you," Brian says and points out that Luke is the one shutting out his friends and family. Luke says this is all Brian's fault because of the kiss. Brian apologizes and says it is his fault. He admits that he kissed Luke but says he isn't gay. He says life is more complicated than a gay definition; Luke accuses him of being stuck in the closet. Brian says his choice isn't wrong. He says he loves Lucinda very much and they can have a great life together. Luke asks how he can make a joke of marriage. Brian says they make one another happy in all of the ways except sex. Luke keeps hammering him with questions and Brian reminds Luke that he promised not to judge him. "Don't let that one mistake ruin everything," Brian says. Luke agrees to keep the kiss a secret. They shake hands.
At Margo's door Katie finally stops Brad by saying she will be arrested, too. Brad says Dani was in on this from the beginning but they can stop it; he points out that Margo will defend her. Katie insists that Craig will win and they will be destroyed. "Your brother doesn't scare me," Brad says. Margo hears their raised voices and asks what is going on. Brad stays quiet and they leave. Dani arrives a while later to tell Margo she has to resign. Margo asks why. Dani makes up a story about a sick friend; Margo suggests a leave of absence rather than quitting but Dani says that isn't fair to Margo or the force. Margo questions her some more but Dani sticks to her story. Margo asks for her new address so she can forward Dani's check. Dani says she is on direct deposit and hurries out.
Margo arrives at Katie's and tells them about Dani quitting the force. She asks if Dani quit because of her run-in with Brad! Brad says that could be but Katie butts in and says Dani was probably not cut out for police work. Margo doesn't buy that but they don't offer anything more so she leaves. They go to bed but Brad can't stop thinking about Craig and her lies. She defends her actions. He forgives her lies but says she has to stay away from Craig from now on.
Next on As The World Turns:
James convinces Paul to down a bottle of pills!
Derek mistakes Lily for Rose; Lily shows him a picture of Jade.
Barbara tells Meg that Paul is in trouble and they have to help him.
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