Michael learns that it's actually George Sr.'s twin brother Oscar serving time in prison, not George. After getting a tip from Barry, Michael heads to Reno to find George, but that costs him a camping trip he promised his son.
George Sr. drops a major bombshell that he was working with a British syndicate who conned him into building the house in Iraq. Michael decides to investigate the claim by heading to the British section of Orange County, where he meets a beautiful and mysterious woman named Rita.
George Sr. is placed under house arrest by the family's new attorney Bob Loblaw, and finds that it's not exactly a walk in the park. Michael sets up his first date with Rita, but Rita has an unfortunate encounter with the family beforehand.
To prove he's a man to Rita, Michael and his nephew Steve Holt compete in the Church And State Fair's annual triathlon. George Sr. tries to scare some at-risk youth, and Tobias tries to help George-Michael's girlfriend Ann to compete in the fairs' "inner beauty" pageant.
The family's meeting with Japanese investors backfires big time when Tobias mistakes a real government agent for a talent agent. GOB tries to connect with his father, who is controlling a Surrogate. Meanwhile, Michael has another encounter with Rita's uncle, and Maeby's romantic comedy is a total flop.
Michael plans to marry Rita, but that's not before her uncle Trevor intervenes, and Michael discovers Rita's handicap. When the family learns that Rita has millions of dollars, they try to speed up the wedding process.
The family plans their annual fund raiser, and they actually have a cause this time - Tobias is ailing due to his transplanted hair plugs, which appear to be rejecting him. Lindsay uses the illness as her ticket back into high society, and Michael learns of the prison warden's true intentions with his mother after reading the warden's screenplay.
Michael is tired of his father always having GOB compete with him, so Michael gets GOB his own banana stand franchise, only to find that GOB has set it up 20 feet from the old one. After the two compete, they decide to teach their father an elaborate lesson, and Buster refuses to use his handicap to scare kids. Meanwhile, Maeby uses Lucille's surgery in a horror film.
George Sr. suggests a last-ditch effort to save the family by holding a fund raiser to raise money to pay their legal expenses. Michael suggests to Lindsay that she take over the house work, and he sends George-Michael to an expensive boarding school. Meanwhile, Maeby has trouble with a snowboarding film and Tobias tries to be a "discipline daddy".
As the family's upcoming deposition nears, they participate in a mock trial, hosted by Judge Reinhold. Michael searches for a mysterious witness on the list, while the prosecuting attorney makes Michael an offer he cant refuse. Meanwhile, GOB practices his ventriloquism act, and Buster fakes a coma to get out of testifying.
Michael's quest to locate the mysterious "N. Bluth" leads him to Nellie, a prostitute who he believes is his long-lost sister, and the woman who just might be able to clear everything up. Meanwhile, Buster's fake coma incurs the wrath of real doctors.
GOB heads to Iraq via his participation in the U.S.O., where he is quickly arrested and being held by the U.S. military. The prosecutors believe this is treasonous, so Michael and Buster head to Iraq to free GOB. There, they visit the house they built and discover what's really inside.
After returning home from Iraq, George Sr. is finally cleared of all charges, and Michael is relieved to be the head of a successful company for a change. The real brains behind the madness is revealed, and just as the family begins to celebrate their victory, a whole new set of problems emerge.