Carson Knowles returns from the Vietnam War to find his wife gone with his child. He then learns that they've replaced him at his day job, and is rejected by every new one he applies for (including his father's old political associate, Mr Cranston). Finally, he gets a job as a courier. A few years later, the hits keep coming as he learns that his estranged son has been killed in a gang fight. Then, 5 years on, his car--and source of income--gets stripped in a bad neighbourhood, and that's the final straw. A mugger appears, asking for Carson's wallet, and he snaps, beating him to unconsciousness. He later learns of Moon Knight's rise to from mercenary to hero in a magazine article and decides to model his new life on him... only in reverse. He recruits some thugs and makes his appearance as BLACK SPECTRE.
Part I: First Clash
Moon Knight takes off with Frenchie on their nightly rounds, despite Marlene saying she needs to speak with him about something. Meanwhile, Black Spectre breaks into Cranston's office and threatens him to vote for Carson Knowles in the upcoming mayoral election. Refusing, Black Spectre beats him up and trashes his office. Moon Knight arrives, but is easily beaten, much to his confusion. He does, however, get a look at Black Spectre's face. Detective Flint shows up, but Cranston refuses to talk. Back at his home, Marc anguishes over his defeat. Marlene tries to talk to him, but is again ignored. Later, Carson makes an appearance on TV, and Marc sees his face, realising he's Black Spectre. He races out, speaks briefly to Crawley, and knows he has to stop him. Arriving at Cranston's office, he overhears him talking to Gus Chiodo, saying Black Spectre is coming for him, which turns out to be true. Chiodo refuses to vote for Cranston and when Marc arrives, finds him hanging dead from some chains. That night, Marlene finally tells Marc she's leaving.
Part II: Sinking
Marc tries to convince Marlene to stay, but she's made up her mind. He does ask for her help, though, to infiltrate Carson's campaign, which she agrees to do as one last thing. Marc also asks Frenchie to find Crawley and ask what he's learned of Carson. Little does he know that Carson's thugs frequent the bar and they attack Frenchie, leaving him in hospital. Having accessed Carson's campaign--as his personal assistant no less--Marlene tells Marc that he's wrong, that Carson is a good man who wants to change the city. Thinking he can play Carson's own game, Moon Knight calls a press conference to try to out Carson as Black Spectre, but the press don't buy it and end up turning on him. Carson sees the broadcast and calls in a favour from the police chief. Upon leaving the conference, Moon Knight is shot at by police. He fights them off, but it shot in the shoulder in the process. He returns home to find Marlene leaving, disgusted at his stunt.
Part III: The Climb Back
Moon Knight pleads to Khonshu to give him the strength to defeat Carson. Meanwhile, Carson's about to speak to the people, and they are chanting his name. He knows it's a sure thing. Going up to the roof for a better view of his adoring crowd, Marlene stays behind, finding his budget plans and finally learning of Carson's plans to take over the city. Up on the roof, Moon Knight appears, but doesn't see Carson, giving him time to change into Black Spectre. They fight, and Moon Knight gets stabbed by his sword. Black Spectre thinks himself victorious and leaves. However, Moon Knight stumbles to his feet and attacks, pushing Black Spectre out the window. They both land in a search light below, and Moon Knight pulls off Black Spectre's mask to reveal it's Carson. Flint is there, and says it doesn't prove anything, but then Marlene shows up with the budget plans.