Olivia is called in to save the reputation of Karen Grant on Scandal Season 4 Episode 4. They find that not only did she escape her Secret Service detail and travel 500 miles away from her boarding school to attend a party, she also made a sex tape. 

One of the boys sends the sex tape to Karen and Fitz asks Olivia to track the boys down. Huck and Quinn set up camp at the White House to track down the boys so they can delete the tape before it's distributed. 

When Quinn finds the boy who filmed their tryst, the family extorts the President for $2.5 million dollars.

Fitz tries to hide Karen's indiscretions from Mellie in order to protect Mellie in her fragile state, but Mellie sees Olivia in the halls and determines to find out why Olivia is there. Fitz comes clean about Karen's sex tape. Mellie ends up being the one able to reach their daughter.

During an investigation into the Secret Service agents assigned to the First Family, Tom Larsen's activities are called into question and Fitz learns that he was at Fort Detrick just before the elections. Jake has been in contact with Tom so Tom calls Jake for help evading the electric chair. Fitz makes a phone call of his own.

Olivia and Fitz finally come face to face following her departure to the island with Jake. She lies to him about taking Jake with her and tells Fitz she was alone. Later, during a romantic interlude, she tells Fitz that Jake went with her. He does not react well.

David Rosen feels guilt over using the B613 files for political gain. Jake asks David to use the files in the event that he's killed and David refuses. Jake asks for the files to be returned and David hands over the storage unit key.

Cyrus Beene's relationship with Michael continues despite the fact that Michael is a prostitute.