Melody buys a sweater that, unknown to her, has real diamonds sewn into it as part of a smuggling operation. The smugglers follow the girls up to Alex's beach house to steal the sweater back.; The Boss sends his incompetent underling, Waldo, over to the Cabot beach house to steal back the diamond-covered sweater.; Alex comes up with a plan to lure the smugglers out into the open and capture them at the annual Beach Comber's Ball.; The smugglers see Pepper wearing the diamonds in her hair and force her to give them up.