Fletch arrives at Stanwyk's mansion on the night of the planned murder, but finds Stanwyk prepared to kill him instead. Fletch reveals his discovery of Stanwyk's real plan: to fake his own death by killing Fletch and burning his body beyond recognition, then escape to Brazil with his first wife and Gail's $3 million. Stanwyk was also using his private jet to smuggle cocaine from South America to supply Chief Karlin, who blackmailed ex-convicts to peddle it on the beaches. Karlin arrives unexpectedly; learning of Stanwyk's intention to flee with $800,000 of the Chief's drug money, he kills Stanwyk. Karlin and Fletch fight over the gun until Gail strikes Karlin from behind, rendering him unconscious.
Karlin is indicted with Fletch's testimony. Fletch begins dating Gail and, in the final scene, takes her on a vacation to Rio, again using Mr. Underhill's tab.