Diego continues his investigation into Señor Verdugo's business by riding to his house, where Verdugo greets him and Bernardo with his arm in a sling. Although Verdugo claims an old injury is bothering him, Diego suspects he may be the leader of the robbers, so he sets a trap. He tells Verdugo the money is being sent via the Guadalupe Trail and should be arriving shortly, but a servant overhears him.
Unfortunately, Sergeant Garcia and Corporal Reyes, who have been sent with the money along the Camino Real, decide to take a shortcut and use the Guadalupe Trail. When Zorro and Bernardo arrive at the trail, hoping to catch the robbers, they're amazed to spot the soldiers riding into a trap they have inadvertently helped set. Zorro is unable to reach them in time, for Tornado had to be left home to avoid suspicion.
The robbers take the money and order the soldiers to dig their own graves, but Zorro overpowers the guards and frees Garcia and Reyes. Just then, Verdugo arrives, apparently confirming Diego's theory that he is the mastermind. In reality, Verdugo has been lured there by his servant, who plans to kill him. Zorro saves the merchant, who explains that he sent his men there to help Garcia and didn't know that his servants were the robbers.
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