Robert Wexler is going to his car in a parking garage. A woman intercepts Wexler and shoots him dead. Nash, in the "Cuda, picks up Rachel. Nash notices that another car is following them, so Nash outmanuevers the car. But the car contains two MCD (Management Control Division) police officers, who promptly arrest Rachel for the murder of Robert Wexler.
Nash is convinced Rachel has been framed, but the two MCD officers reveal they have security video of Rachel exiting the parking garage minutes after eyewitnesses heard the shots killing Wexler. A Cayman Island bank account with $1.2 million dollars bears Rachel's signature.
Nash obtains the services of lawyer Ira Buxbaum. Harvey fills in Ira on the details. Rachel was sent in undercover to investigate Neil Rogan, head of Rogan and Associates accounting firm, a firm laundering money for the Chicago, Cleveland and Miami mobs. Robert Wexler, an accountant for the firm, tipped the SIU. Rachel was attempting to help Wexler when he got killed. The frame-up comes from Neil Rogan.
Ira refuses Rachel's case, but he does agree to help get Rachel out of jail. She is released. Rachel's alibi is that at 5PM she was in the City Records Office. But Antwon checks, and finds out that Rachel left the Records Office at 3:30PM.
Harvey and Rachel visit Mrs. Wexler. Mrs. Wexler accuses Rachel of having an affair with her husband based on an intimate phone message that Rachel has left.
Harvey and Antwon try to bug Rogan's phone, but discover Rogan's phone already bugged. A trace of the high-end bugging device leads to Harley Corzin, a security consultant. Harvey and Rachel visit Harley, and for a $200 incentive, Harley reveals that Mrs. Wexler bought the bugs from him.
Joe is confident of Officer Ronnie as his star arm wrestler to win the SFPD Precinct Wide Arm Wrestling Championship. Joe's rival, motorcycle officer Iron Mike has Eldon Sistrunk as his star arm wrestler.
But Officer Ronnie has an emergency appendectomy. Joe recruits Rulon Jones, a furniture mover for the police department. But Iron Mike steals away Rulon by having Rulon arrested for a $52 parking citation. Joe turns to Eldon, but Eldon's demands are unreasonable. Joe re-recruits Rulon by flying in Rulon's fiancée from Idaho.
Meanwhile, Rogan and his henchman Trask are getting e-mail extortion notices demanding half a million in ransom for secret info on Rogan and Associates. The e-mail is sent from the Wexler household. Trask goes to the house and kills Mrs. Wexler moments before Harvey and Rachel arrive. But left behind is Trask's zip drive containing the e-mail extortion notices.
Ira brings the security video of Rachel at the parking garage. The time code has been faked. Nash asks Rachel about her alibi. Rachel finally reveals she was inquiring about her secret daughter she gave up at birth. The Rogan firm handled the tax work for the adoptive family, and Rachel asked Robert Wexler about it. Rachel did not want the adoptive family dragged into the murder investigation.
Harvey intercepts the next extortion e-mails. The e-mails are sent through Mrs. Wexler's e-mail address, but the sender is actually Harley. A meet is set-up, as Antwon brings a suitcase full of money. The radio signals are tracked to Harley inside a camper parked nearby. Harley is arrested.
On interrogation, Harley is threatened by Nash and Joe to reveal that Harley has secret files on the mob. Harley reveals he was hired by Mrs. Wexler to spy on her husband because of a suspected mistress, but Harley decided to blackmail Rogan instead. Harley gives the files to Nash and Joe. Rogan and his henchman Trask are arrested by Rachel and the SIU. Ira Buxbaum quits Rachel's case in order to represent Rogan.
At the arm wrestling championship, Rulon beats Eldon in the final round to win the championship. Nash drives Rachel to see her five year old daughter from afar.
For more, see commentary for Episode 112