After accidentally killing Juan, who he thought was Jangles, Briggs buries the body in the desert and goes surfing -- relaxed and Zen -- because he thinks he's drunkenly rid the world of a sadistic torture-killer.
Charlie has a brilliant idea of how to break Bello and get him to tell them who Odin Rossi is: they'll threaten Mike with tons of jail time, thinking Bello is so fond of him that he'll talk to the feds to spare Mike. So they send Mike, who still has an oozing belly wound, into prison. But Briggs wants Charlie to drop it, so he arranges for Bello to see Mike meeting with Charlie (who Bello knows is a fed), thus blowing Mike's cover and earning him some really unpleasant-looking gut punches. Dick move, Briggs.
Mike gets hauled into FBI HQ without even a how-do-you-do Vicodin. An agent named Clarke tells Mike that Juan has been missing for three days, and they think Briggs had something to do with the disappearance. Mike goes back to the house and spills his guts (not literally this week) first to Paige, about Briggs's addiction and Mike's investigation, and then to Briggs, about the investigation. Mike tells Briggs Juan's name, which Briggs didn't know, but then Briggs looks Juan up and realizes he's the man he shot. Which means Jangles is still alive and stabbing.
Johnny throws Jakes the worst birthday party ever, mostly because Jakes adamantly does not want a birthday party. As Jakes drunkenly tells the new husband of his ex (Derek and Cassie, respectively) at a bar, birthdays remind him of how badly he messed up his life and the relationships he's lost. Jakes tries to reconcile with Cassie after Derek tells him they're having problems, but drunk and weepy isn't the best way to win a lady back, and she bans him from ever seeing his son.
Johnny soldiers on with Worst Party Ever, because he wants to distract everyone from the shitty, crack- and murder-infested realities of their jobs. And then Charlie pops the bouncy castle and the strippers leave and everything sucks.
Previously on Graceland: Okay, so it turns out that Charlie's new Mexican cop pal, Cortez, is the Jangles who stabbed Mike. Thanks for the tip, commenters. In my defense, that scene was really dark. In other news, Juan is certifiably crazy and Mike is freaked out. And Jakes has a son who doesn't know him.
Flashback to 18 months ago. Bar. Jakes, Johnny, Donnie, and Briggs are throwing darts and drinking until the lambs stop screaming. They talk about Klein, a DEA pal of Donnie's, who killed a meth dealer while high on painkillers and is being charged with involuntary manslaughter, even though the agents all agree it was self-defense and he should go free. (And here's another place where this show is the highest of fantasy, because in real life, the FBI has found its agents completely faultless in all of their shootings since 1993! So really, Klein has nothing to worry about.) Johnny, who's clearly the new guy in the house, asks if he should be drinking. Jakes and Donnie laugh, but Briggs reminds him to know his limits.
Present day, on the beach, where Briggs has just shot and killed Juangles. Briggs goes to his truck and brings back hiding-the-body supplies. You know, the things every federal agent has in his trunk at all times. He pulls down Juan's bandanna and doesn't recognize him, obviously. He rolls Juan up in a tarp, finds the shell casing in the sand, and drags the body to the truck. Briggs drives away (remember how Briggs is completely wasted while all this is happening? Yeah) and we see the recording device in Juan's car, still capturing everything.
FBI building. A couple of lawyers list all the charges Bello is facing while Charlie watches on the other side of a two-way mirror. Bello asks what the feds are offering him to give them Odin Rossi. They offer witness protection for his family and special treatment in prison if he's convicted. Bello wants immunity, but the lawyer reminds him that he's a murderous drug kingpin.
Charlie throws the deal makers out of the room and starts threatening Bello with going to jail, surrounded by Mexican inmates the Caza cartel can hire to kill him. Bello knows that his silence is valuable, because the government will want him to stay alive in case he ever changes his mind and wants to testify. Charlie threatens him with rape again, some more, and Jesus Christ, am I tired of prison-rape tropes. TV, you must come up with a new prison-is-bad marker. Like how Jax Teller got his beautiful torso ventilated in the joint. That was pretty bad, huh?