Prison. Carroll's lawyer, Olivia, comes into the interview room. She looks terrified of him, so she's obviously making some bad career choices. Or she's a follower. He invites her to sit down. She asks why she's there, and when he says he requires legal counsel, she says there's nothing she can do for him. Carroll says she owes him some favors.
Flashback. Olivia is apologizing to Carroll for losing the appeal. He orders her to file another one, and she suggests he use another firm, or maybe the ACLU. I'm pretty sure the ACLU would come down on the side of those girls' right not to have their eyeballs carved out, but, you know, IANAL. Carroll says Olivia has gotten a lot of attention for representing him and it's helped her career, so he says he wants her. She says there's nothing more for them to do and tells him good-bye, wishes him good luck.
Present. Compared to her confidence in the flashback, present Olivia looks like she's barely managing not to scream and flail. Carroll starts another of his pedantic monologues about how Ryan is being so impressive in his investigation, so he needs to move his plans along faster than they'd originally planned. He wants Olivia to feed him information about the investigation. She agrees, very reluctantly, and looks a second from bursting into tears.
Ryan is watching Olivia on TV. She's reading a statement from Carroll, which, of course, is primarily made up of selections from The Masque of the Red Death. I'm really starting to question Claire's sanity even before she realized her husband was a crazed killer. Who marries this kind of pretentious jackhole?
Some dude with giant eyebrows is also watching the press conference. He picks up his phone and makes a call. Another random dude answers -- ah, so The Masque is a trigger. Eyebrows says, "It's time" and then gets up in his creepy basement lair and goes over to his wall o' guns.
Back at the prison HQ, Ryan says that the short story is about a masked killer moving from room to room, murdering people. Parker protests that Carroll is locked up, but Ryan says it's a message for his minions. He asks Mike how he's doing on the location, and Mike says he's narrowing it down, but Ryan insists he was right the first time: it's Dutchess County. Which covers more than 800 square miles -- you going to go knock on the front door of every white farmhouse with black shutters?