- In the present day (at the police station) Baer arrives and tells Kujan that Kovash says the boat incident wasn't a drug deal but something else. He also mentions that someone named Keyser Söze was involved.
- Kujan goes back in the office and asks Verbal who Söze is, to Verbal's obvious displeasure (he curses).
- As Verbal continues his story, we flash back to Keaton and the other guys discussing what to do next over a game of pool.
- The mysterious lawyer Kobayashi arrives and says that his employer wants them to do a job for them, though it's very dangerous and they probably won't all survive. But those who do will get ninety-one million bucks.
- Kobayashi says that each of them owe his employer—Keyser Söze—because of various acts of hijacking and theft and scams they've performed, inadvertently stealing from Söze's interests.
- Kobayashi explains that Söze's a narcotics dealer, and he wants them to help him stop a drug deal which will threaten Söze's domination of the drug market.
- They need to destroy the cocaine stored on the rival Argentinian dealers' boat (the Argentinians are selling to a Hungarian gang).
- Kobayashi leaves them with a briefcase—containing folders demonstrating that Söze knows everything about each one of them.
- Verbal asks the other criminals who Keyser Söze is. Turns out, he's a mysterious master criminal who seems almost mythical.
- We see this next part as Verbal narrates it: Verbal tells Kujan that when Söze was a small time drug dealer in Turkey, a group of rival Hungarian gangsters raped his wife and then murdered one of his children in front of him in order to try to make him give them his part of the drug market.
- Instead, while the gangsters hold his family hostage in front of him, Söze shot the rest of his living family members and then killed all the gangsters except one. He says he'd rather have his family dead than have them live after this.
- Then, Söze goes and murders the families of all the gangsters, killing even their parents' friends and burning down their houses and businesses. He disappears from public view and becomes a kind of boogeyman gangsters tell their kids about.
- Kujan asks Verbal if he believes in Söze, and Verbal says he's afraid of him.