Mel is heartbroken when Steve's web of deceit and lies are uncovered after his death. She discovers that Steve was having an affair with Phil's sister, Sam Mitchell (Kim Medcalf), and that Steve sold their club and house behind her back. On Lisa's wedding day to Mark, Mel is arrested for drug connections after she is implicated in Steve's drug smuggling; Mel had unwittingly signed Steve's paperwork, linking the drug smuggling back to her. Facing a long spell in prison, Phil bails her for £30,000 when she discovers that she is pregnant with Steve's child. She then discovers that Lisa was responsible for shooting Phil and that both knew it was not Steve, despite her continued suspicions. Feeling betrayed by everyone, she toasts herself before going to Portugal so Phil loses the £30,000. Later that year, Lisa and Louise join Mel in Portugal.