Struggling writer Alton Bennet explains to psychiatrist Dr. Redman how he has nightmares about murdering his wealthy wife, Ruth, who owns very valuable jewels.

Charlie, informed by overhearing police radio, mentions there is a "murder rap hanging over this junk" and pays out only for a couple of small pieces.

Benson runs into Merl and asks her to deposit the money into her bank account, suggesting he has earned it from a recent job and does not want to be tempted to spend it all.

Benson plays down his relationship with Merl and suggests he can help Dawson and Cooper with the Bennet case, for a share of the eventual insurance payout.

She tells Cooper, when he asks her about it – the pawnbroker had immediately recognized the ring and had phoned police – that she had no idea that it could be Ruth Bennet's property.

Benson works to frame Merl for the murder and the theft; he shows Dawson and Cooper her bankbook and insinuates the recent large deposit has to do with the stolen loot.

Benson had stolen the transcript describing the murder scenario nightmare, and had gone to take the gems; when he arrived, he saw Redman leaving the Bennet apartment after killing Ruth.

Back in her apartment, Benson learns that Charlie has been taken in for possession of the stolen property; the private eye is further caught in his web of lies and is arrested.