He tells Carol that he lives in a canal boat and after the two children capture Bella, he shows her round his home.
They take the statue to Miss Brown who tells them about a rich man, Adam Kent, who once lived in the house.
Before he died, he left clues, leading to the location of his fortune, on the bottom of two statues, which were intended to go to each of his two sons.
When the get back to the house they meet a rude fat man with a motorbike who they help after he drops his radio, though he turns out to be ungrateful.
They suspect the man of the theft of the treasure and so they hide out in a shed, which contains some radio equipment, waiting for him to return for his bike.
Bob spots it in the water and they rush to the boat house, freeing Carol with only half an hour left to get to the park.
Bob and Dan see a man wearing black glasses with a motorised toy boat painted red and green.
They see Number One on a motor boat heading up the canal and Mike points out that they can stop him at Five Locks and so they call the police.
At the locks the fat man and Number One become trapped and the police arrest them, finding the picture in the Red Dragon and the treasure in the blue bag.