The town attends a welcome home party for Lapaz, a young man who attended the same school in Spain as Diego. Lapaz actually skipped school a lot and hung out with the wrong kind-of crowd in Spain, but asked Diego to keep that a secret. Lolita's parents talk about how Lapaz's father, Don Jose, is in shady business and wouldn't be a good in-law. Gonzales gets injured at the party but then is arrested for an attempt to murder Don Jose, who was found with a stab wound in his back. After interrogating Gonzales, the army arrests Lapaz for the murder attempt. Zorro vows to clear Lapaz's name and find the true criminals...