The mob hit man who killed Giardella and who Laura can identify, is trapped on the roof of the building with a hostage. Martinez works on his first detectives case, which involves a fake ATM machine taking peoples money. Meanwhile, Fancy and his wife prepare to face a court date when a foster child they've been caring for is ordered back into custody of the real mother who's just been released from a drug rehab program. Sipowicz and Kelly investigate a shooting of mobster Tommy Linardi, whom had taken over the late Angelo Marino's organization, in which turns up a notebook that Marino kept which has Janice's name in it. Janice asks Kelly for help who decides to steal the notebook to protect her from further investigation to Marino's murder, while Fancy again locks horns with Inspector Lastarza over the handling of the case.

Simone and Sipowicz investigate a case where two transvestites witnessed a murder that they say was committed by a 'gay-basher' who's supposed to have been in jail for a previous crime. Meanwhile, Fancy's former foster son is arrested and charged with possession of a kilogram of heroin. He tries to make a deal with Sgt. Ray Kahlins, the "blow hard" from the DEA who worked out of the squad room the previous year, to nab the drug dealers. Medavoy finally asks out Abby Sullivan, the beat cop from the anti-crime unit upstairs. But she turns him down by revealing that she is a lesbian. Elsewhere, Russell gets more deeper involved in her undercover work which puts a strain on her relationship with Simone. But the psycho Jimmy's malevolence puts Russell's life in danger when he puts a drug in her drink.