Holmes tells Gregson that Terry was collecting blackmail. He enjoys saying "In flagrante delicto" almost as much as Tim Curry in Clue. There are hours of video, but they're not labeled. Gregson moans about how it will take days to have a team of people watching it in shifts. But Holmes happens to be great at watching multiple screens at once! How convenient! So he's just going to stream everything to his ridiculous multiple televisions and stare at them.
Watson comes in with tea. Holmes says she hasn't missed a thing. A lot of this video is prostitute-free, which he finds surprising. Also, Holmes has poured someone's garbage on the floor to see if it causes him to relapse. So far, it has not.
Watson gets a call from Carly Purcell. She says she's fine on the pain-pill front, but she just needed to talk to someone. Hey, we get to see Watson doing her job with someone who wants her to do it! Carly says her mother wasn't what people thought. But her father is sticking his head out the door, so Carly has to go. Well, that was productive. Thanks, Carly!
Holmes has finished watching the videos, and he's moved on to something more interesting: the photographs on Terry's computer. They're generic pictures of her family, but each one is over a gigabyte. That seems like more than you'd need, unless she was planning on making enormous posters of them. Aha! Holmes reveals that it's steganography! Security through obscurity! Holmes is speaking the language of my soul. It basically means that the image files have a whole lot of extra information hidden in them. But then he has a nonsense piece of decryption software, which takes it back into the realm of fantasy. Holmes warns Watson that the hidden content is probably horrible and vile. It's actually just people talking in foreign languages. Russian, I think. He grabs the phone for Gregson. Back to the Purcell home!
The police roar up as Oliver Purcell is bringing the trash in. Holmes congratulates Mr. Purcell on being such a good spy. A spy, you say? Holmes explains that the escorts made the hotel popular among diplomats. Mr. Purcell wasn't fired from his job at a financial management company; he resigned when they signed a contract with the Department of Defense. Holmes says Oliver stepped outside to shake hands, and Terry left some coins out on the desk. Both of which are Russian traits, so they must be Russian spies. Oliver would like a lawyer.
Interrogation chamber. Gregson says the feds are on their way, because this case is bigger than the NYPD. The FBI will be handling the espionage, and they're lucky they're being allowed to sit in for the murder. Watson shows up and says she's been trying to contact Carly, who is seventeen and in crisis. Watson believes it's traumatic to find out your parents are Russian agents. Holmes thinks Carly might have been a spy herself. And spies have handlers!