Horatio and Megan -- whose pants, incidentally, never lose the ability to shock the senses -- are walking through the hall, talking about how Pedro's lawyer, Martin Diaz, is the Latino Johnnie Cochran, and Basilio's probably the guy who set it up. Horatio explains this with, "There is debt in every favor." We can infer, then, one of two things: either Basilio helped to arrange passage for the now-dead Elena and is trying to make amends, or Basilio is something of a Cubano Corleone, and does what he can against the day he needs a favor. Anyway, Horatio flees the pants and comes in to have a chat with Pedro y friends. After Diaz asks Horatio to be kind (to which Horatio responds, "As always"), Horatio begins to lay out the evidence for Pedro: "The gun in your room ties you to two murders...we also have skin cells on a tourniquet you used...allegedly used to save your sister's life. Now, are you going to rebut everything I'm saying?" Diaz confirms that -- thus playing into Horatio's hands, since, you know, Horatio knows everything.
Horatio then says, "Pedro, habla me. You know what that is, don't you?" "That" is the Caridad de Cobre medallion. Going by the shocked look on Pedro's face, he recognizes the medal. Horatio begins talking again, as Diaz protests in the background: "Now, it was never door-to-door service. The way it works is, you get dropped off as soon as you see the lights of Miami, but that night, there was a storm, wasn't there, and the captain's boat was taking on water. He took out a gun, and ordered everybody off. You refused, and he started shooting." Diaz explodes with, "I am taking my client out of this room until there's a formal investigation in place." Horatio's not cowed: "Whatever you want. Pedro, I know that you tried to save your sister's life." We see the rainy deck again, and Pedro grabbing the gun, then tossing a life ring over the side before leaping over with his sister, the gun still in his hand. Horatio continues, "I know you took the rope out of the inner tube and made a tourniquet, but it didn't work and she bled to death before she got ashore, isn't that true." At this point, Diaz is seconds away from picking up Pedro, tossing him over his shoulder, and sprinting out of the room. Pedro decides he'd rather talk. To make a long story short: Pedro shot Elena, because if a Cuban refugee is wounded, the Coast Guard has to take them ashore for medical treatment and they can then begin the process of getting a green card. Pedro knew he could swim to shore, but Elena was too weak, so he shot her in the leg, then began swimming to Miami. Unfortunately, he shot her right near her femoral, and while he did not blow her leg off (which would have been more likely with the gun he had), he did manage to hit near a major blood supply. Since she already had the albuterol in her system, her circulatory system wasn't exactly equipped to deal with major blood loss. To give Horatio some credit, he looks incredibly shocked at this story. However, I can't help but wonder why Pedro didn't try shooting his sister in the foot, then firing another shot as a makeshift flare for the boat nearby. Then again, I have no idea what I'd be thinking if I had just lived through a night like Pedro and Elena had, so who knows what I'd be calling a good idea by then?