A notorious counterfeiter passes himself off as a Secret Service agent to Steve and gets him to unwittingly help him bilk the racetrack out of tens of thousands.

Notorious counterfeiter "100 Dollar Bill" Bailey has eluded police capture for fifteen years while passing off his signature C-notes. He brazenly passes himself off as Secret Service agent Charles Mitchell to McBride and McTavish and recruits police help in what they think will be a sting operation at the local racetrack to catch Bailey. Actually, Bailey/Mitchell uses the opportunity to exchange his phony bills for the real thing right under Steve's nose. Torchy, with the aid of a furloughed Gahagan and a German shepherd named Blitzen, is able to penetrate the counterfeiting ring.—[email protected]