Lieutenant Rafael Santos is ambushed on his way to Monterey and left for dead when the ambushers take his identification and uniform. One of them, a killer named Anastacio, puts on the uniform and rides to Verdugo's, where Diego is discussing the investment deal. The real soldier is not dead, however, and his beautiful white horse stands guard by his side.
Anastacio tries to drug Sergeant Garcia, hoping to steal his money belt, but the plan fails and the money is delivered to Diego. The Verdugos will take the money to San Francisco to invest it, with the fake Santos and Romero acting as guards. Diego and Bernardo then head back to Los Angeles. On the way, they discover the real Santos lying in the road. He tells them his name and faints, but they have learned enough to know the Verdugos are in trouble.
Diego takes the soldier's horse and sets off after the merchant and his daughter, who have been attacked by the fake Santos. The bandit and Zorro engage in a sword fight and the masked man wins. He orders Anastacio to name the other thieves. Just then, Romero kills Anastacio, claiming he was too upset to think clearly. Zorro warns the travelers to be careful on their way home to Monterey, then rides off into the night.
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