He's itching to drop in on Frank and Damon's interview, but Dawson sends him in to talk to Steven. Joe shows him the security camera picture. "I wanna know where he is," Joe says, pointing out Michael. Steven plays dumb.
Frank tells Damon that Maya gave up Michael. "Maybe he ran away because he knows you killed Hobson," Frank says. "He wanted to protect you." That... makes no sense. "He took off, but not because of me," Damon says. He drops trou and adds his steaming pile of lies to Maya's. He stops just short of saying Michael killed Hobson, but supposes he could have gone to the trap house on his own.
Dani drops the friendly act with Gus. She pushes him to name Michael or Damon – either one is fine with her. Since she doesn't have the same agenda that Frank and Joe do, she's actually interested in the truth. She threatens to call his parole officer. For a few moments, it looks like Gus is going to give up Damon, but switches to Michael.
When Joe floats the same story to Steven, he gets a different reaction. Even when Joe tells him that everybody else is blaming Michael, Steven manages to stick up for him. He swears on his mother that Michael didn't kill anybody. "You got two guys in that picture," he says, "and Michael didn't do it."
Frank and Dawson are both upset with Joe, although for entirely different reasons. Frank's pissed because they had already decided to pin the murders on Damon, and Dawn is pissed because... well, who knows? Maybe he wanted to get home early and now he has to deal with all these conflicting stories. "We need a confession out of Damon since he's the only suspect we have in custody," Dawson says. "Both of you, work him fast before he figures out you were lying about the wife calling him a lawyer." Some guy walks up to them (maybe the District Attorney?) and Dawson promises him they'll have a confession soon. "The press will love it," the guy says. Then, to Joe and Frank: "You two will be heroes when I put you on the stand in the Lady Belle trial." What in the hell is that supposed to be? There have been a couple of offhand mentions of this trial, but no sense of what it actually is or why it's important. Frank and Joe look kind of blank, too, so maybe they don't have any idea of what it is, either.
They head back into the box to question Damon some more. "Michael killed Hobson, got scared, took off," Joe recaps. "I told you all that," Damon says. "Well, maybe we're slow," Frank says. "Maybe"? He wants Damon to repeat the story. He says he wasn't there when Hobson was killed, but that Michael was crazy high the day it happened. "Michael asked to borrow my car, went for a drive. Didn't see him for a few hours. He was really messed up." He makes like he never saw the coke himself, even when Frank tells him they know he's been deal a helluva lot of it.