Don Alejandro tells Diego he's received a letter from a friend in the capital telling him that the new commandante, Capitan Juan Ortega, has the reputation of being an honest and fair man. When Ortega arrives, he doesn't act that way. He treats Sergeant Garcia with contempt and is openly arrogant toward the civilians. The reason for this is revealed when Ortega meets the magistrado and informs him that the real commandante has been ambushed and murdered, on orders of the Eagle.

The fake Ortega and the magistrado announce they have captured Zorro, and a cart holding a masked man is dragged into the town square. A public unmasking will be held at noon, and Diego fears that an innocent man will be charged with Zorro's "crimes". He also realizes it may all be a trap, so when he dons his costume and rides into the square to free the prisoner, he watches carefully for soldiers.

The plans of the fake commandante and the magistrado go awry when Ortega spots Diego talking to Rosarita Cortez, a childhood friend who has recently returned from the capital. Ortega fears she will recognize him from her journey, for it was during that trip that he murdered the real Ortega and assumed his identity. Bernardo overhears the two villains planning her death, and notifies Diego.