Back at the police station, Winnie tells Shawn and Gus that years ago she accidentally set Bill's boat on fire but before she could confess, the insurance paid it off. Fuller knew the truth and blackmailed her for insurance fraud. Since Fuller was so old, Winnie figured paying him off would be the cheapest move, erroneously thinking he didn't have many years left. Instead of all this being a setback, Shawn thinks this is the break they need, figuring Mrs. Guster wasn't the only person Fuller was blackmailing.
They go back and search Fuller's house and along with finding evidence that Fuller was going senile, they discover hidden binoculars, a camera and an envelope full of blackmail pictures. One of the photos depicts evidence of an illicit affair, and from a detail around the window of the bedroom, Shawn can tell which house the couple was in when the photo was taken. At the house, they find the man's son, who tells them the picture was from thirty years ago but his father couldn't be responsible for Fuller's death because he's been dead for years. He doesn't know who the woman in the photo is, but he remembers she used to visit at night and smelled of White Linen. They go back to the Gusters' to report their progress on the case and while there Bill gets a flyer in the mail for Fuller's estate sale, commenting that people will be forced to buy back things that were probably theirs to begin with. This gives Shawn an idea of how to solve the case. He calls Lassiter and Juliet to meet them at the estate sale where he figures the culprit will try to buy back the incriminating photos and will still be wearing her signature perfume, White Linen.
At the sale, Gus doesn't sniff any woman wearing that perfume, but when Shawn sees Mrs. Mitchell bid on a collection of "antique photographs," he asks Gus to take another whiff to determine the major component of the fragrance. It's gardenia. Shawn then reveals the truth. Like Winnie, Mrs. Mitchell was being blackmailed, figuring Fuller would die soon with her secret intact. But when Fuller started going senile, she panicked, thinking he would accidentally reveal the truth, bringing ruin to her prominent family. First she tried to poison him, but he spit it out, breaking the teacup and staining his shirt. She then hit him with a hammer, which only dazed him. Finally, she put a rope around his neck, looping it over the banister and tying it to the chair lift. When she sent the lift down, it hoisted Fuller off the ground, strangling him. With the case now solved, Bill and Winnie now admit that Shawn might not be such a bad influence after all.