The judge was concerned about teaching James a lesson, helping his victims, and living with himself as a jurist if he's lenient with James. Phillip insisted his son has learned his lesson, and Phillip has paid back all of the victims. As for the judge, Phillip mentioned that there just happens to be an offshore account with a large sum in it that will have a zero added if the outcome of the hearing is favorable. Meanwhile, James was blasé as the hearing began. The judge started out by calling the 312 fraud charges outdated because all the victims were paid back — therefore there was no crime. He offered James option of jury trial or summary ruling. Since the judge strongly hinted at leniency, James opted for a ruling. The judge declared him guilty of violating an anti-fraud provision and sentenced him to one year of community service. Beth saw Phillip thank the judge and guessed what happened. "Thank you," she said. Then she told James that Phillip got him off. Alex likewise figured out what happened and declared, "You're becoming more like Alan every day." When James was released, he announced, "I know what you did, Dad, and now I hate you even more." In the parking lot, Beth told James they're going to spend more time together. Then two of his party buddies rolled up in a stretch limo, and he left Beth and Phillip disgusted.

Lizzie suggested to Bill that they quit the company. Bill called a press conference to make the resignations irreversible. Alan and Alex were stunned to see the announcement on the evening news, but Alan saw an opportunity: "I'm back," he crowed. Bill and Lizzie let Ashlee choose their wedding date on-air: July 13 — just 29 days away. Later, Bill met with Billy and Vanessa at Towers. Billy offered his son a job at HB and Sons as "VP of VPs." Bill accepted, then asked Billy to be his best man. In his office, Alan was tossing his hat into the ring for CEO when Lizzie stopped by to sell him her shares of Spaulding. He accused her trying to buy her way out of the family, and refused. He agreed to hold her stock until she realizes she's a Spaulding at heart. She told him she will keep the briefcase he gave her as a constant reminder of that fact.

"What the heck was going on just now?" an anguished Rafe demanded, after seeing his mother and Olivia getting close. "I didn't want you to find out like this," Natalia wailed. Olivia said they were friends, and didn't expect anything to develop. Then she left to take Emma home. Rafe asked if Olivia forced herself on his mother. Nat assured him it wasn't like that, and admitted she wanted to keep the "just friends" masquerade going — until Emma was old enough to be told. Rafe was horrified at the idea of telling an child, and wondered what her preference meant about her feelings for himself and Gus. "Tell me it's some kind of weird itch you need to scratch," he begged. "I'm in love with Olivia," she confessed. He stomped away. When she tracked him down, he said, "You don't love her! Not that way," suggesting Nat was confused because Olivia received Gus' heart transplant. Nat said Liv makes her feel better about herself, and, "It's not weird, Rafe. It's love." When she said she wanted to be a family, he was incredulous. Rafe pointed out all the time they both spent in church, praying and lighting candles, and declared that Natalia and Olivia would both wind up in hell.

Later, Liv wound up in Towers, where Billy found her downing martinis. Then she went to the courthouse to consult Doris, who advised her to give Nat and Rafe time. Doris said the "perfect time" to tell a child never comes; in fact, Ashlee still doesn't know! Elsewhere, Natalia asked Frank if he'd seen Rafe. Frank was aghast that the women were so careless. Later, Rafe asked to bunk with Frank, because his mom and Olivia "are together or something." Frank offered Rafe sympathy and a cup of an adult beverage. Alone at home, Nat was pouring out the champagne when Olivia arrived. Nat was heartbroken, but trusted that Rafe would return when he was ready. What does this mean for us, Liv asked.Nat looked at her gravely: "I don't know."