We finally get to see how the half naked man from the opening scene got to the trunk of Malvo's car. Lorne just entered the office where the man worked as an accountant and literally dragged him by the neck tie to the parking lot, cut his clothes off with a knife and put him to the car. He did not really care for the other workers, who saw him, or the cameras, so Molly, who's on the frozen man case now, got his vague photo.
Lester's wound condition is deteriorating. He gets back to work and his first assignment is to visit the widow of Sam Hess and get her to sign some forms. During the meeting, the lady uses her strip-dancer charms to get the insurance money faster. The Fargo guys see Gina on top of Lester through the window and this raises their suspicion.
They visit Lester at work and ask questions about his involvement with Hess' murder. Luckily for the insurance agent, Molly appears at the door, and the guys leave, but promise to return. Molly says she wants to hear about insurance plans and "accidentally" drops her papers, so that Lester would see Malvo's photo. And of course, he starts acting very suspiciously and asks her to leave.
Malvo confronts Don about the blackmail note and finds out that the coach doesn't really know the story behind Stavros' starting funds, so he decides to take over the blackmail. He kills Stavros' dog and replaces his meds with some drugs and also leaves a new note, asking for a million dollars this time. Milos calls Lorne and demands that he catches the blackmailer at once. Malvo convinces him he must stay in his house and the businessman agrees. Later, when Stavros is under the drugs influence, Malvo arranges for him to take a blood shower.
Molly tells Bill how Lester reacted to Malvo's photo, but he doesn't want to listen to her. Right about this time Gus comes to Bemidji and confesses in letting a criminal go. Turns out the car Lorne was driving that night in Duluth belonged to Lester. This leaves Molly wondering, why Mr. Nygaard did not report the car theft, and told her it was in the shop. Also, Gus recognized Malvo on the photo from video surveillance.