Remember, there are spoilers behind the cut!
I found this episode to be slightly informative, yet annoying at the same time. We learn a bit more about the origins of the cape. It has been handed down among master magicians who all turn on the persona of "Kozmo." Max Malini was the last official Kozmo. His apprentice was Gregor Molotov. Gregor did receive the cape as the new Kozmo but he used it to murder a woman. So Max took the cape back and Gregor traveled around various Russian prisons for 20 years. However, as an escape artist, Gregor managed to find his way out of every prison. This time, he has come back to the Carnival to retrieve his cape.
While at the Carnival, Gregor meets Vince and figures out that he is the one with the cape. At the same time, Ark is breathing down Orwell's neck. Ark raids her hideout mere minutes after she flees. Orwell turns up at Vince's door berating him for trying to shake down one of the members of Ark's police squad that set him up as Chess. Thanks to his shenanigans, Orwell has lost her hideout.
So now both Gregor and Orwell are at the Carnival. Gregor reads Orwell's palm and reveals a few tidbits about our unknown computer expert. Unfortunately, these aren't really informative facts. She's spoiled, has daddy issues, and she's been imprisoned. In all, it's pointing toward Orwell being Peter Fleming's daughter.
Of course, Gregor doesn't get the cape. Of course, Vince proves to Max that he is honorable enough to handle the cape without going to the dark side. Of course, Vince's wife, who believes he is dead, is starting to move on with her life. And, of course, this shows his tortured soul side.
I believe Scales is back as the Villain of the Week next Monday. If the show doesn't pick up the storyline a bit more, it will definitely lose the audience. I know this is only the third episode (the pilot consisted of two episodes) but people won't wait around forever.