Diego's uncle, Estevan de la Cruz, arrives in Los Angeles for an unannounced visit and surprises the de la Vegas when he tells them he plans to be their house guest. Furthermore, he expects them to give a lavish party to welcome him. All of this angers Don Alejandro, but to head off a family dispute, Diego convinces his father that Estevan will leave soon.
His good intent proves to be a problem for Diego when Estevan later offers to sell several jewels to his friends. Estevan claims to have bought them in Spain, but Diego realizes the gems are fakes and that if sold, could bring shame on his family name. To prevent this, he tells Bernardo to steal the fakes, only to find they're already missing.
Zorro captures the thieves and keeps the fake jewels so Estevan cannot swindle his friends. The thieves are turned over to Sergeant Garcia and Diego thinks the matter is settled, but Estevan has decided there is money to be made in Los Angeles and announces that he plans to extend his stay.
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