- A rough-looking man walks into an office and tells another dude (who we recognize from Scene 1) that their man lost all the bookies' money to a couple of con artists, who we know are Luther and Johnny.
- It looks like our boys stole some money from the mob and don't fully realize it.
- The main man telephones New York to ask his mobster boss what he'd like to do about the robbery.
- In New York, we see a man go to deliver the message to the big man at the top, Doyle Lonnegan.
- Lonnegan wants to know if the grifters who took the money off their man are working for another mob. His henchman tells him that their men are trying to figure that out by running down leads. Lonnegan tells him to have the grifters "taken care of."
- Now we flash back to Johnny Hooker, who heads over to Luther's place to visit the old man.
- All of Luther's family members seem to be grifters themselves and they're happy to see Johnny.
- When Johnny sits down with Luther and their other partner, they divide up the money. Luther asks Johnny how much of his own share he lost and Johnny admits that he lost all of it.
- Luther then tells Johnny that he plans on getting out of the con racket. Luther thinks that Johnny should put his talents into making one big score that'll put him on easy street for the rest of his life.
- Luther says he's got an old friend named Henry Gondorff who should be Johnny's new con partner. In Luther's words, Henry is the best "inside man" he's ever met. Johnny isn't too happy about it, but he accepts Luther's decision.