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Neal has figured out that Adler is the man responsible for Kate and Mozzie, but he has a hard time fitting that image to the Adler he used to know. At the same time he realizes it is Adler, Peter figures it out as well. Peter tells Neal he has to tell him everything he knows about Adler, but Neal doesn't want to because it involves crimes Peter doesn't know about it. Peter offers him full immunity for everything Neal tells him from the time he starts talking until sunrise the next morning.
For starters, Neal tells Peter he has decoded the music box and it makes a fractal. He has seen one before, when he used to work for Adler. Eight years earlier, when Neal was new to the city he first met Mozzie on the street when he won a lot of money by scamming a man. Mozzie found out where Peter lived and went to talk to him. The two of them hit it off and realize they could make a lot of money by using Neal's forging skills. The first person Mozzie proposed that he and Neal swindle was Vincent Adler. It turns out that the bonds that Neal and Mozzie were trying to scam Adler with was the first time Peter had heard of Neal, when he got the case.
In order to fund their endeavor against Adler, Neal cashed in some bonds at the bank. As he came out of the bank, where Mozzie was waiting for him, they overhear Peter talking to the bank manager. Neal decided to go up to Peter and introduce himself in a moment of brashness. At the party where Neal meets Adler later that night, he also meets Kate (who is Adler's assistant), although she had a boyfriend at the time. This episode shows the moment where everything begins with the Neal/Kate/Mozzie/Peter relationships.
Learning how everyone met and how their pasts all fit together makes this episode one of the more important to air so far in this series. It is also fun to see how they changed everyone's appearance to reflect the past when much of this takes place. But this episode also leaves a lot of questions unanswered. Watch it and find out what is going on and where it will go next.
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