Ah, the Waterfords, the couple we love to hate. In an uncomfortable turn, season three spends a significant amount of time forcing us to empathize with Serena Joy as she tries to get Nichole back. Anyway, Mrs. Waterford finally takes up on Mark Tuello's immunity deal as a last-ditch effort to see baby Nichole, which leads to her husband's arrest in Canada as a war criminal. While Fred is incarcerated, she intermittently visits Nichole.
But Fred realises what his wife has done and screws her over. While interrogated, he reveals that Serena forced Nick and June to have sex in order to have Nichole. This divulgence works, as Serena is then too arrested as a war criminal.