Margo asks Tom how he can let Craig "drag" Johnny from Dusty's arms, but he informs her that Craig has a legal right to Johnny, and he tells her that Craig didn't "drag" Johnny from Dusty, the exchange was peaceful. She wants to know if he's alright with all of this mess, and he tells her everything is being done by the books, but she declares that it's still wrong!

While Tom and Margo continue to argue about Craig, Tom's phone rings and it's Craig. Craig tells Tom he needs to meet with him, because he has a situation. Tom tells Craig he'll be right there.

After Tom ends the call, he tells Margo he has to meet with Craig. Margo asks Tom what he thinks Craig has planned, but Tom tells her he doesn't know, and he goes on to say even if he did he couldn't tell her about it.

At Fairwinds, Lucy asks Craig to promise her he'll drop the custody case. "Visitation is one thing, but custody is another," Lucy tells Craig. Without hesitation, Craig informs Lucy that he is not going to drop the custody case, and then she discloses she has to go to the police and turns to walk away. "He's my son," Craig shouts. Turning back around to face her father, Lucy continues to beg him, and in tears, she asks him not to make her go to the police. Her pleading and tears doesn't seem to change his mind, because again, he refuses to drop the case. He goes on to tell her that Dusty is only using her for her money. "His heart isn't going pitter pat, it's going cha ching, cha ching," Craig carries on.

Later, Craig tells Lucy to go ahead and do what she feels she has to do, but he's not going to give in, and he tells her that no matter what she decides to do, she will still be his daughter.

As Lucy is walking away, Tom arrives and notices Lucy is upset. Tom asks Craig what is wrong with her, but Craig tells him she just has a lot on her mind. Tom doesn't continue to question Craig, instead he asks why he called him over, and Craig advises Tom that he believes everything is taken care of now.

Simon invites himself into Katie's home, but Katie asks him to leave. He refuses telling her they need to talk about what they had, and to make sure they are not interrupted he demands to know where Mike is. Katie informs him Mike is out of town, and she proceeds to throw the box of memories away.

As Katie heads for the trash, she drops the box and Simon kneels down to help her pick it up, but she insists she can do it herself. Simon, on the other hand, refuses to follow her orders and helps her pick up the mess anyway.

While Simon helps Katie, he surprised to learn that she saved all their times together. She tells him it's just stuff she's done with, but he starts going through the box. While rummaging through the box, he finds something he doesn't recognize, and she tells him it belongs to Mike. He doesn't understand what something of Mike's is doing in a box of things that remind her of him. She informs him that it doesn't remind her of Mike, she says it reminds her of him. As she goes to take the trinket from Simon's hand, it falls to the floor and breaks. Katie sobs and Simon comforts her.

Later, Katie apologizes for getting upset, but Simon tells her there's no need, and he continues to go through the box reminiscing on the past the two of them shared. Simon asks her why she's throwing it out, and she cries when she tells him it's easy to give up the stuff, because what they shared wasn't real. She goes on to say the marriage she has with Mike is real. Again, she asks Simon to leave.

Simon refuses to leave! He tells Katie he will not leave with her thinking everything they had was a lie, but she reminds him the only reason she married him was to keep him for being deported.

"I know I didn't love you then, but later on..." Simon begins and pauses for a moment.

"You know I try to pretend to be something that I'm not, but I can't. I can't seem to shake it you know. I'm a con man by trade. I'm a thief and I'm a liar, but there are some things that even I cannot fake. There are some things I can't control and manipulate, and loving you... what we had in this house together was the most real, and the most true thing that has ever happened to me, and no one will ever take it away from me!" Simon continued.

"And why should I believe that?"

Simon responds by telling her she was there and felt it just as he did, but she tells him she loves Mike. Upset, Simon tells her she's already told him that a thousand times, and he wants to know why the marriage they shared meant nothing. She tells him he made them nothing when he left. Simon tells her he left to save her life. She admits to him when she thought he was dead she wanted to die too, but she moved on instead, and then when she got her life back he walks right back in! She goes on to tell Simon she doesn't love him, she says, "I hate you!" Simon is stunned!

"Go, get, get out now," Katie screams punching him in the arm.

Katie's anger gets the best of her, and she and Simon begin kissing passionately.

Meanwhile, at Carly's place, Carly hangs up the phone after leaving a voicemail for Simon. Before hanging up, she conveys to Simon she's going to tell Jack everything.

Jack purposely closes the door to get Carly's attention. Carly turns around and Jack asks her if there's something she wants to tell him. "Nothing you haven't already heard," she answers. Carly goes on to tell Jack she lied to him when she told him what she and Simon had was "just business." "Isn't that what you wanted, me to move on?" Carly finishes. Jack doesn't give her the answer she's seeking, instead he tells her he misses her and wants her back. Carly's surprised and asks him why. He tells her he didn't want to go, he wanted to stay. As she weeps, she tells him he's had plenty of chances and now -- today -- he wants to come back!

"I'm the only man you'll ever love," Jack tells Carly.
"Not if I can help it," she retorts.

He goes on to say she belongs with him and attempts to kiss her, but she pushes him away and tells him she can't be with him. When he asks why, she says, "It was hard, sometimes impossible." He wants to know why it was so hard, and she tells him she was always trying to do things his way by living up to his standards.

"It's easier with Simon?" Jack asks.
"Yea, it is."
"Are you happier with Simon?"

Jack tells her she's the only woman he'll ever love, but she says when he left she became someone else, and she can't go back. She orders him to leave, but before he walks out the door, he tells her to be careful with Simon. "And if he ever hurts you..." Jack continues. "He won't," Carly interrupts. After Jack leaves, he stands outside the door and cries.

Adam asks Maddie why Casey is so determined on Gwen getting a demo, but Maddie tells Adam he should ask Casey, and about that time, Casey walks up. Adam asks Casey what he just asked Maddie. Casey tells Adam it is because Gwen is his friend. Maddie apologizes to Casey, she tells him she thought Adam knew, and then she excuses herself so the two of them can talk.

As Maddie leaves, Casey tells Adam what happened between him and Gwen. Afterwards, he tells Adam Gwen is his friend and he wants to help her. Adam says they have a major history that might complicate things, and Casey tells him he's either in or out. Adam responds by telling him he doesn't know if he's in or out, and he won't know until he hears the rest of Gwen's material. Casey accuses Adam of making it personal, and Adam says it is personal because they are all brothers. He continues by telling Casey he will keep his commitment to Gwen, but if they don't "click creatively," it won't happen. Reluctantly, Casey accepts the response, and Adam advises him to go get Gwen so they can get started.

At Java, Dusty asks Lucy, "Testify against your father. Would you do it, do it for Johnny?"

Later, back at Fairwinds, Lucy meets with her father again, but this time Margo and Dusty accompany her.

"Craig Montgomery, you're under arrest," Margo informs.

Tomorrow on As the World Turns...

"It just seems like every time I turn around there you are," Gwen confronts Jade.

Trying to hold back his emotions, Craig tells Lucy, "I'm not a perfect father, but the love I have for my children -- all three of you -- is perfect. Don't let Dusty destroy our family!"

"We are ready to move on... together," Carly discloses to Lily.

Simon and Katie make love.