Meanwhile, Peter is furious that the NYPD would scuttle their operation, but he's even less happy about having Neal on his own without a plan. However, with the watch transmitter in place and Neal seemingly occupied with a beautiful woman, Peter is content to hang back.

That is, until Meilin smashes Neal's watch. With Peter now out of the loop, Meilin reveals her secret: the seductive beauty is working for Interpol, and she knows all about Neal Caffrey. She was the one who called the NYPD in order to save her own operation. Interpol has been working Lao to get to his boss, and she wasn't going to let the FBI ruin her case.

Naturally, Meilin wants Neal to let Lao walk. Neal refuses to betray Peter, until Meilin plays her trump card. She has information about Kate, which she'll gladly share if Neal cooperates. And with every day bringing Neal and Kate further apart, it's an offer Neal just may consider.

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