Celebrating Christmas Eve together, the residents are caught by two patrolmen, but McKeever convinces them to let the families stay until after the New Year. Jim then reveals that the camp has been sold to O'Connor, and he is considering the job offer in Bolivia, resulting in Trudy breaking up with him. When Mary and Trudy find out how Mike has manipulated the situation, Mary thinks he has not changed after all, and that she and Trudy will leave for Florida. Ashamed, Mike arranges a meeting with "O'Connor" for Jim and his partners, who are dubious but accept. At the meeting, Mike reveals his true identity and transfers ownership of the camp to them, provided that they not reveal his identity to McKeever.