Even with his stolen gold gone, Basilio plans to remain in Los Angeles as a wealthy man. He decides to do so in a way that will let him exert a hold over Moneta Esperon, the attractive daughter of a wealthy landowner. Basilio tells Garcia that Spanish law forbids citizens to possess items made in countries that are at war with Spain. Those that do will forfeit their entire households to those who inform on the lawbreakers. Garcia is soon convinced that this would allow him to become a don himself, and thus leave the harsh life of the army behind. He is tricked into taking Basilio to Don Esperon's home, where he identifies several items as being from England, France and Italy. The sergeant begins to regret his actions, but Basilio tells him he will be hanged for treason unless he cooperates. Zorro makes life miserable for Garcia by promising to carve a "Z" in his hide if he goes along with the plan. During the trial Garcia decides to speak up for Don Esperon, much to the viceroy's dismay. Zorro provides another surprise when he bursts into the courtroom and takes Basilio prisoner. He then uses his sword to cut away parts of his prisoner's clothing, proving that the items came from enemy countries. Zorro then demands that Basilio pronounce sentence on Esperon and the cornered criminal has no choice but to declare him innocent.
Elenco: Guy Williams , Gene Sheldon , Henry Calvin , Jolene Brand , Eugenia Paul , George J. Lewis , Guy Williams , Henry Calvin , Jolene Brand , King , Richard Anderson .