WARNING: The following contains spoilers for Penny Dreadful: City of AngelsEpisode 5, "Children of the Royal Sun."

Penny Dreadful: City of Angels' Nazis have been on point so far in the series as they infiltrate Los Angeles in the '30s to build a criminal empire. They've got contractors and politicians in their pockets, all while instigating a race war between white supremacists and Mexican people to clear a path to domination.

It's all about infrastructure and transposing the Third Reich as a business rather than a dynasty of bloodshed, but in "Children of the Royal Sun," Hitler's covert team is dealt a couple of massive blows.

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The first comes with Brian (Kyle McArthur), a Caltech physics student who's secretly been hired to build bombs for the Nazis. Detective Lewis (Nathan Lane) initially beat him up after the Nazis killed some Jewish investigators but the officer let him live, so long as he stayed off the Nazi grid. He's intimidated by the villains, though, and seems to still be theoretically working on explosives, until he's confronted by Lin Shaye's Dottie at a cafe.

She has a more subtle approach than Lewis and warns Brian that he doesn't want his work to be used in genocide. She promises her people will look after him and get him out the Reich, which leads to him accepting haven. She's also a former dog of war and bomb-maker so they bond over that and run through the science of what he's working on. The betrayal, however, is spotted by Kurt (Dominic Sherwood), an American hitman for the Reich's main man, Richard Goss (Thomas Kretschmann). Kurt phones his boss after spying on the traitor, leaving Richard angry and having to concoct a plan for his genius student.

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But Kurt may turn out to be a problem himself. When Alex/Magda (Natalie Dormer) starts losing control of the power-hungry councilman Charlton (Michael Gladis), Richard begins to get pissed. Charlton senses he's a big player who can move contracts in the transportation committee, allowing the Nazis to build highways through Mexican villages, and starts demanding a bigger say. He didn't mind selling his soul to the Nazis even though he isn't one, which leads to Alex and Richard using Kurt to seduce the closeted politician.

Kurt sleeps with him and Alex records the sex tape at a rundown motel to use as leverage because Charlton does want to become LA mayor. The Nazis were fast-tracking it and now, with this tape in hand, any insubordination from Charlton would be shut down. However, as Kurt starts sneaking off and visiting Charlton home, it seems their romance is growing genuine, which means Richard could lose his biggest political pawn as well as his hitman. Both Americans may be willing to sacrifice the Nazi dream as they're seemingly happy with each other and may look to sneak off somewhere to eke out a future. The dinners and little gestures of affection aren't what Magda or Richard envisioned, putting the plot to take over America in disarray.

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Kurt has been killing Jews for Richard, as well as other nosey people, so Richard has to get his ship in order. Magda's a bit busy with the Pachuco war right now, as well as seducing Dr. Craft (Rory Kinnear), so her multi-tasking is biting her in the backside. She'll need solutions fast because Richard has made it clear Hitler won't accept any sort of failure from them.

Created, written and executive produced by John Logan, Penny Dreadful: City of Angels stars Daniel Zovatto, Natalie Dormer, Nathan Lane, Jessica Garza, Kerry Bishé, Ethan Peck, Adriana Barraza, Michael Gladis, Dominic Sherwood and Johnathan Nieves, as well as Piper Perabo, Amy Madigan, Brent Spiner, Lorenza Izzo, Lin Shaye and Adam Rodriguez in recurring roles. The series airs Sundays at 10 p.m. ET/PT on Showtime.

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