The Baudelaire children are at Briny Beach, wondering why their parents did not accompany them along on the trip. 

They are shocked when they see a man in the distance. He addressed himself as Mr. Poe and reveals to the children that their parents perished in a fire and that they are orphans. 

The kids don't know how to process it, and Klaus finds a mysterious telescope in the ashes of the house that he takes as a keepsake. 

When the kids are told they are going to live with Count Olaf, they question who it is, but Mr. Poe maintains that he is family. 

The chiidren stay in the Poe household for the night and Eleanor Poe abuses her trust by taking quotes from them for a potential headline at the Daily Punctilio. 

When the kids arrive at Count Olaf's they are shocked to meet him because of the way he acts with them. He wants rid of Mr. Poe so he can put his plan in motion. 

When he learns, he will not have access to the fortune until Violet comes of age, he makes a plan. 

Justice Strauss shows up with beef for the children, but Olaf eats it and lies that the kids said it was too salty. 

The parents are revealed to be alive and in a truck, planning an escape.