Sins of the Father
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When Audrey confronts Vince and Dave, furious that they kept their knowledge of her past a secret, they admit that they've known her as three different women over the years: Sarah, Lucy, and, of course Audrey. They tell her that each time she returns to Haven she has new memories and that she always helps the troubled.
Across town, the ghost of the recently deceased Arlo tricks Bill into shooting Sheila, Arlo's ex-wife. Nathan calls Audrey to the scene where he updates her … and asks her out for the first time. After Audrey agrees to the date, the two of them get back to work and find out that there's been another homicide incited by a ghost—but what is the source of this trouble? The common denominator seems to be Eastside Cemetery. When Audrey and Nathan visit the cemetery, ghosts surround them, but Audrey can't see any of them.
Meanwhile, when Duke's father Simon Crocker appears out of thin air, Duke is certain he's imagining things but unfortunately it's real and, worse, Duke learns that the family legacy is to kill Haven citizens with troubles. Duke isn't the only one faced with an impromptu family reunion—Nathan's father appears as well, advising Nathan to steer clear of Audrey as a romantic interest.
Audrey and Duke team up to find Kyle, the person who buried both Arlo and Duke's father, but before they can find him they run into the ghost of Reverend Driscoll, who threatens to kill Audrey unless Duke comes with him. Duke leaves to protect Audrey and, after she reconnects with Nathan, Audrey discovers that the troubled citizens of Haven are being kidnapped and held for Duke to put them out of their misery.
At gunpoint, Audrey and Nathan tell Kyle that he is responsible for all the ghosts wandering around town, including Reverend Driscoll. Distraught and fearful that his unborn child will have the same curse, Kyle grabs the knife in Duke's hand and kills himself, ending his curse for good.
The next day, Nathan shows up for his date with Audrey only to find that she's been kidnapped. The only evidence? A necklace belonging to Duke. Livid, Nathan rushes to Duke's boat and, blind with anger, pulls his gun on Duke. Even though Duke denies any wrong-doing, he is stunned into silence when he sees that Nathan has the circle tattoo that Duke knows will mark his killer.
We hear a gun go off, but was it Nathan shooting Duke, or someone else shooting him?