'Suits' Season 4 Episode 4 RECAP: Mike Makes a Deal with Harvey’s Nemesis in Leveraged [SPOILERS]

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Recap of "Suits" Season 4 Episode 4, Leveraged:

The episode 4, "Leveraged," opens with Donna coming to Mike's office, unannounced. She tells Mike to sit down, shut up and listen. Donna is angry at him for using their private conversation about the recordings of Harvey's father to win against Harvey. Donna does not mind Harvey and Mike knocking each other out but she warns him, not to betray her again. Amy is watching the one way interaction, with awe, and is mighty impressed with Donna. She says to Mike that Donna is even better than she had imagined. It is revealed that Amy had sent Donna a "guilt gift," a designer bag, on behalf of Mike, which does cool down Donna a little.

Meanwhile, Jonathan Sidwell is impressed with Mike for finally acting like an investment banker, without seeking his permission. He likes Mike's move to buy more shares in Gillis' company but there is a catch. Sidwell wants Mike to de-leverage within a week and if he is unable to do that, he is out of the job.

Harvey pays a visit to his Season 3 finale nemesis Eric Woodall. He is there because of the seven subpoenas against the top seven clients of his firm. Woodall has been fired from his old position and is using his new position and his past Justice Department association with SEC investigator, Sean Cahill, to target Harvey and his firm.

As Harvey sees himself as the main reason why SEC is coming after the firm, he wants to take on SEC. Malone, however, objects to that as he has been hired to exactly do that. Jessica also does not allow Harvey to play a proactive role. She puts him on the bench. Afterwards, Malone objects to Jessica trying to baby sit him when she comes with a strategy to stop SEC. She tells him that she is the bazooka and not the baby-sitter.

Cahill arrives at Pearson & Specter fully prepared when Jessica and Malone hands him the subpoena for going after them with a malicious intent. He drops the news of Malone soon getting fired from SEC on Jessica. Jessica is angry that Malone did not tell her about that before making himself available to be hired by his firm.

Harvey approaches Louis to help him with the TRO to enable the takeover of Gillis' Industries. Mike uses Sheila to mess-up Louis's head in the court. He breaks the news of Sheila's engagement to stop Louis from winning against him. He also shows Louis the photographs of Sheila with her new man. It is a disappointed Harvey who points out to a broken-hearted Louis that the photographs are not real but have been photoshopped. Later, Rachel finds Louis in a teary state and finds out from him what Mike did at the court. At their home, Rachel tells Mike that winning has become everything for him and he no longer minds hurting his friends. Mike is more concerned about the employees at Gillis' industries who may lose their jobs if Logan Sanders takes-over the company.

Mike zeroes-in on Tony Giannopoulos to get the investment for Gillis Industries. Amy contributes her ideas, as well, so that Mike successfully manages to convince Giannopoulos. However, Louis meets the man first and spoils Mike's efforts to win the investment. Mike finds out from Louis that he told Giannopoulos that his number 2 man left his company because of Mike. He also tells him that investment people love sticking it to someone who stuck it to them more than they love the money. Louis also does not accept Mike's apology and tells him that he will remember what he did till the end of his life.     

While Mike is busy trying to find an investor, Logan meets Rachel and wants her to work on five potential takeover deals, as there is a broad meeting soon. Rachel does not see Logan succeeding in his marked potential deals and suggests that he look for companies that are not performing. Logan does not find Rachel's suggestion acceptable, as his company is not known to be into such kind of deal making. Rachel accuses him of using the board meeting excuse to spend more time with her. Afterwards, Rachel comes more prepared and sits with Logan to make him see how he cannot go ahead with any of his planned five deals. She also convinces him to present her idea at the board meeting. Once the work is over and Rachel is about to leave, Logan comes close to Rachel and they are almost on the verge of kissing. Rachel breaks the moment between the two and walks out of his office, with an anxious look.

Taking a leaf out of Louis's piece of unsolicited advice, Mike meets one of Harvey's old nemesis Charles Forstman. The man is ready to help but there is a condition, Sidwell should not benefit from his investment in Gilles' industries. Sidwell must not make a penny from the deal. Mike does not have another option, and he sees it as a better opportunity than getting fired from the company at the end of the week. He informs Louis about his meeting with Forstman.   

At Mike's old firm, Donna asks Harvey to appreciate Louis efforts to sabotage the possible deal between Mike and Giannopoulos. She reminds him about how Louis considers him a friend and had asked him to be his best-man at his and Sheila's wedding and Harvey had agreed. When Harvey goes to Louis' office to express his appreciation, he finds out from Louis that Mike picked on Louis's words to approach Harvey's nemesis. Harvey is not at all happy to learn that.

Jessica and Malone think that they have scored a victory against Cahill when the seven subpoenas are dropped. Malone had approached the judge and had told him that Cahill is driven by personal vendetta. He also mentions about how he was asked to take-on Pearson & Specter. Jessica and Malone had offered Cahill a deal -- they would drop the malicious persecution charge if he takes back the seven subpoenas. Harvey stops Jessica and Malone's celebration, telling them a client called him informing that Cahill asked him to cough out dirt on Harvey. Malone blames himself for not seeing through Cahill's real plan to approach the clients, directly, and that he wanted to drop the subpoenas. Later in a bid to cheer-up Malone, Jessica shows up at the front of his house, with DVDs.

Harvey visits Mike and tells him that he is wrong to team-up with Forstman, as the man does not do anything without getting something in return.  In the past, Harvey had made a similar mistake of doing a shady deal with Forstman and he had to pay for it. Mike tells him that he has no other option. Harvey leaves his office, telling him there is always an option.

Mike hands over the contract document to Frostman.   

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