However Tancana's not gone for good. Shawn remembers the directions he gave and knows exactly where he's headed - Delbecchio's houseboat. They take Henry's boat out to find Tancana there, searching for evidence of his innocence. Shawn spots torn up money bands and a necklace with a charm that matches the marks on Isabella's neck. While not conclusive proof Delbecchio murdered Isabella, it shows he was at least close to her body. Gus finds a cell phone, but the battery is dead so he pockets it to check later. Just then, shots ring out - Byrd has caught up with them again. They all jump into the water to escape, but Tancana is fast, steals Henry's boat and takes off. They find Juliet, who has been scouring the case file to find anything that could lead to Tancana's capture. Shawn notices a picture of one of his tattoos. It looks like 'Barb,' which Gus figures could be the name of a girlfriend but Shawn realizes it's a bad prison tattoo and is actually 'Bar 13,' a local biker hangout. They once again track down Tancana, who is starting to believe Shawn's psychic, and agrees to let them out of the bar alive if Shawn will use his ability to help him track down Delbecchio and prove his innocence. With Byrd waiting for them at the Psych office, they take refuge at Henry's, where they plug in Delbecchio's phone. They are only able to retrieve part of a message due to water damage, but it's enough for Shawn to piece together a location - Meadow Parking Lot. When they get there, they find Delbecchio dead, but before they can investigate, Byrd arrives and spirits Tancana away.
With their only lead now being Delbecchio's body, they notice a distinctive smell on it. They have to get Tancana back and devise a scheme to offer Byrd more money than he'd get from Cole to return Tancana to them. They all meet up at the police station, where they make the trade for a briefcase full of pharmaceutical supplies, and give Juliet the collar. With Tancana finally back in custody, Shawn tells them they got the wrong man for the murder. Cole was the one who killed his wife. He had been thinking about it for a while and used the break in as a perfect cover up, easily pinning it on the robber, Tancana. But he was unaware of an accomplice, Delbecchio, who witnessed the murder, stealing Isabella's necklace as proof to blackmail Cole. When Cole went to meet him for the money drop, he strangled him instead. But Delbecchio fought back, getting Kangaroo Paste on his hands and therefore identifying his own killer.