 Carmel is killed in a train crash and a ring disappears from Carmel's body. The McQueen family accuse Mercedes of stealing it. Porsche McQueen (Twinnie Lee Moore) eventually owns up to stealing it. Mercedes prepares to leave the village but she is stopped and stabbed by an unknown assailant in her home. Police find blood in the kitchen an launch a murder investigation. Freddie is arrested but later goes on the run with Lindsey. Grace is revealed to be Mercedes' killer and carries on with a scheme to frame Freddie. Joe discovers the truth but Grace asks him to board a flight to France. He agrees and when he arrives at a villa Mercedes meets him and explains that she and Grace are framing Freddie for murder. She reveals that Grace stabbed her to make it look authentic and received money in exchange. Lindsey sees Grace talking to Mercedes via a webcam but the police accuse her of lying. When Phoebe is arrested for Mercedes'murder after being framed by Lindsey, Mercedes threatens to come home if Grace does not secure Phoebe's release.
