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Frank Alberti is the guardian of Lydia, a sweet and unsuspecting young girl. By the terms of his brother's will in the event of her death he will come into possession of her property. An unnatural relative, he plots to remove her and adopts despicable methods. He is a man of some prominence and he enlists the services of one Bernard, a gambler, who is possessed of remarkable hypnotic power over weaker minds. Alberti lays his plans craftily. He takes Lydia to the seaside and invites her to go out rowing in company with himself and a friend. Bernard is disguised as a boatman and rows them to sea. The dory has been tampered with and sinks. As the boat fills with water Alberti and his friend swim for it and leave Lydia struggling in the water. The scene is an astonishing one. The girl is seen to sink down, far below the surface, and then rise again. Bernard conceives a cunning plan and dives and rescues the girl that he may extort money from Alberti. He swims with her to safety unknown to his accomplice. Lydia is reported drowned and Alberti makes a pretense of mourning her death while enjoying his sudden acquisition to wealth. He pays Bernard a sum of money agreed upon and breaks with him. Bernard takes Lydia to Vienna. She is subjected to his hypnotic influence and meekly obeys his every will. Bernard is accompanied on his flight by Fritz, his faithful tool, and the pair meet a young Englishman, Vernon, and invite him to their gaming table. They play for heavy stakes and the young man wins. Having lost his money, Bernard resolves to get Vernon in his power. Acting under his direction Lydia induces Vernon to drink of drugged wine and he is made unconscious, while Bernard, partially concealed, directs her movements. Bernard repairs to the gambling room and becomes involved in a quarrel. He receives a blow which stuns him and he is rendered unconscious, and his influence over Lydia vanishes. She recovers her faculties with a start and is bewildered. Recovering her composure she arouses Vernon, who makes his escape from the window by means of a rope, improvised by using curtains. Lydia is about to follow when Bernard regains consciousness. He returns to Lydia and his shadowy form is seen and, after a brief struggle, she once more succumbs to his influence. Vernon staggers along the street, gradually awakening to the horrors of the situation. He secures assistance and returns to raid the gambling house and rescue Lydia. Bernard and Fritz make good their escape by means of a secret underground passage, through which they intended to convey the body of the girl. Lydia can give no information to the officers as she is still in a dazed condition. Bernard telegraphs Alberti for money, making the demand peremptory and Alberti responds in person. Vernon sees the precious scoundrels at the railway station and follows them to an inn to call the police. In the inn a heated argument takes place between Alberti and Bernard, but Alberti is forced to give Bernard a large sum of money. Just as Bernard is counting the money the police break in upon them. There is a short but decisive duel with pistols and Bernard is killed and Lydia recovers her faculties. She comes to the room where Alberti is being questioned by the officers and appears to Alberti. He believes her to be a ghost of his ward and, in his terror, expires. Later we see Lydia and Vernon at the seaside, happy, and the inference is that they are betrothed, a happy culmination of a tragic story.