After Prue is accused of stealing a priceless tiara from the Auction House, she is stunned to discover Rex and Hannah are warlocks, set to destroy the power of the charmed ones. When Piper and Phoebe set out to prove Prue's innocence, Rex and Hannah blackmail them to turn over the book of shadows and their powers to them. However, their plan is foiled by a guardian angel that comes to help the sisters.
Spoilers ahead. Coverage follows the scope labeled below.
Complete story — includes the ending
Rex uses astral projection to control Prue's mind, tricking her into stealing a tiara from a vault in the auction house. Prue ends up in jail. Rex blackmails the sisters into giving up their powers to him, but Leo, revealing himself as some kind of supernatural protector of the sisters, returns their powers to them. Now fully empowered, Prue, Piper and Phoebe defeat Rex and Hannah who are vanquished by evil forces for their failure.