Gina's shifty new husband, Clint Radison, coached Marge, a diner waitress, on how to impersonate the wealthy Katherine Chancellor. Once Marge mastered her impersonation, Clint kidnapped Katherine and her maid, Esther, and held them hostage in a remote cabin. Marge's first order of business as "Katherine" was to sell several valuable Chancellor properties, an act that surprised Katherine's friends and family. Meanwhile, Katherine's husband, Rex, found himself increasingly baffled by his wife's unusual behavior. No longer able to tolerate her new eccentricities, and boorish behavior, Rex moved out and took up residence with Jill, who persuaded Rex to divorce Katherine and marry her.

Marge and her cohorts were on the verge of becoming wealthy by selling off the Chancellor estate when Katherine's son, Brock, made a surprise visit. Brock immediately surmised that a stranger was passing herself off as Katherine and demanded to know his mom's whereabouts. Marge finally broke down and confessed, which led to Katherine's and Esther's rescue. And Clint was arrested for his role in the scheme.

Katherine was devastated to learn that during her absence Rex had married Jill. With her lawyer's help, however, Katherine pointed out that the marriage wasn't legal because Marge--not Katherine--had signed the divorce papers. Katherine agreed to accept Rex's marriage to Jill, provided that they wait six months before legally remarrying. During the waiting period, Jill began seeing her ex-husband, John Abbott. Complicating matters more was Rex's unusual romance with Leanna Love, whom he pursued while posing as a man named Roger. Katherine decided to blow everyone's cover by arranging a party where she took delight in watching Jill and Rex's love lives explode.

Paul Williams, who was believed dead, was actually working closely with his father, Carl, to expose Cassandra and her lover Adrian as the murders of her husband, George Rawlins. Paul and Carl followed Cassandra and Adrian to Bermuda, where they tormented Cassandra with visions of Paul as a ghost. Horrified, Cassandra quickly returned home. Soon after, Cassandra confessed that on the night when George was murdered, she was knocked unconscious. When she awoke, there was a gun in her hand and her husband was dead. With Cassandra's help, Paul and Carl succeeded in exposing Adrian as George's killer.

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