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In this second part of season 4, the viewer starts off right where they were left: Neal on his balcony confronting Sam about his true identity, as Neal's father.
Neal's father was a con-man of his own sort, tricking Neal into thinking he was someone else. Neal's father used to be a police officer, and eventually a detective. In the last episode it was revealed that Sam is actually James, Neal's father. This was a surprise for Neal. Neal feels betrayed and is questioning James's motives even more than before.
Neal, in this episode alongside Peter, targeted the Irish mobster Flynn, whose family is interwoven with the narrative of his father, and Neal's life too. Neal gets involved in counterfeiting whiskey for Flynn Jr. and attempts to uncover the truth about his father's crime while on the con.
In order to set up Flynn, they first send Neal undercover as a microbrewer, and set the meeting for an event at which Elizabeth, Peter's wife, is working. Neal is able to entice Flynn into a business deal by counterfeiting a rare whiskey.
Peter and Elizabeth invite Neal and James over for dinner, in an attempt to force them together to talk about their family life. Sam reveals that when he was framed, Flynn Senior had a gun kept in a whiskey box that he used for murders.
Below are some clips of the episode setting up how the con is planned, and how to entice Flynn. (SPOILER ALERT, if you want to watch the full episode)
Peter goes to meet Flynn Jr., posing as someone looking for counterfeit whiskey to sell. During the meeting, Flynn tells Peter they will only be producing 55 bottles, and sends his crew in to take out Neal and Mozzie in the back room. To give them a couple seconds, Peter distracts Flynn by going behind the bar looking for other whiskeys, but what he was really looking for was the whiskey box with the gun James was describing. Peter pulls the gun on Flynn, while his henchmen enter the distillery to attack Mozzie and Neal. Luckily, they took a bottle of whiskey and threw it in the oven, so the henchman are knocked out from the fire. The rest of the FBI crew comes in from the truck and arrests Flynn.
Flynn, after being arrested, was stabbed to death in his prison transfer. Turns out someone had him killed, and had access to that knowledge, as not many people were aware of Flynn's arrest and so forth. Peter warns Neal to get James, because whoever is behind this has a long and powerful reach. Neal goes back to his apartment, having an emotional exchange with James, who says that he has to hide out and leave the city, so that he can be part of his, Neal's, life.
The show ends with James walking out on Neal again, and flashes back to a day Neal watches his father leave him as a child. The episode ends.