Shawn and Gus get called in for an important meeting in Chief Vick's office but when they get there they are surprised to find Special Agent Lars Ewing of the Treasury Department, who is in town on a counterfeiting case and has brought along his partner, Lindsay Leikin, a psychic who not only has had great success on this case already but is determined to prove Shawn a fake.

Jimmy Nickels, Shawn and Gus' childhood bully, has called and is coming to see them at the Psych office. The guys are scared but determined not to give up their lunch money again, until they open the door to see that Jimmy has not grown an inch since they last saw him, which is one of the reasons he became such a successful jockey. He's come to hire them. He's been losing his races and he doesn't know why. Despite Gus' protests, Shawn agrees to take the case. He has felt guilty ever since he turned Jimmy in for hitting a teacher with a spitball, which led to Jimmy's expulsion. Shawn feels he owes him.