Episode Three continues the Jolly Roger Fraud. Pat McKraken from Universal Adjustments called Johnny Dollar but it was too late Dollar had already packed for his vacation to San Diego. Coincidence would have it the case that McKraken wanted investigating was also in San Diego and the commission would pay for two vacations.

The Jolly Roger was one of the finest sea going yachts on the west coast before she burned and sank. She was a total loss to the insured sum of $460,000 and belonged to an unsavoury character named Paulos Zinageon who had been a suspected spy during two world wars.