Don Diego and Victoria suspect that the female medium Miyarana, who claims to speaks to deceased loved ones of people in the pueblo, mainly of the rich, and her travel companion Ricardo Quintano, who sells the poor 'magic' stones, are frauds. Zorro finds out they pay the alcalde 20% for insight in his official records, so they can dazzle their dupes with private facts. After don Alejandro finds them fakes, he is threatened; don Diego comes to his defense and is made to duel Ricardo

The stage coach brings two visitors to Los Angeles. Firstly there is Victoria's brother, colonial army Lieutenant Francisco Escalante, who concludes after a meal with Mendoza that the garrison is in no condition to resist a U.S. annexation attempt; the alcalde promises him a post- if he captures Zorro. Furthermore a woman claims to be the mother of Jose del Reynoso- Felipe?! Don Diego recalls how he adopted the boy after finding the orphan, probably mute from that very trauma, at the August revolution battlefield, under the cart where his real father lay dead;