Karen confesses everything to Mike. He agrees not to press charges against her if she produces a list for him of every deal with Artrec, every cheque she forged, etc. Sarah asks Katy how her relationship with the older lad she fancies is going. Katy says it isn't and tells Sarah that he's called Mark. Mike lets Joe know that he's uncovered the whole scam. He tells Joe that he's calling the police and that he can look forward to going back to prison. Karen overhears Joe telling Mike that the only reason he started a relationship with Karen was so that he could use her for forging cheques, etc. Karen is hurt and angry. To Joe's horror, Karen gives Mike the list of information he requested and tells him that she's transferred all the money they stole from him back into his account. To avoid being a laughing stock in the rag trade,