Daniel Morgan, retired banker, lives with Paula his wife, and June, his daughter, married to John Lansing, an experimental scientist. June gives birth to a daughter, at the time her mother is on her deathbed Paula's last wish is that the newborn shall be named after her and instructs her husband to present her $50,000 necklace to the baby on her wedding day. Morgan promises to carry out her wish. She dies. For five years, Morgan finds consolation in faithful devotion to the welfare of his daughter and her family. One day he takes them to Atlantic City for a rest. There, induced by June, Morgan visits Maxine, a clairvoyant, who predicts tor him a second marriage to a young woman "who will make his life an earthly paradise." Morgan succumbs to the wiles of the clairvoyant, and next day June finds her father in Maxine's company. Meanwhile, June's husband meets with an accident at New York, and June returns home. Morgan remains at Atlantic City, stating he has an important "business engagement," and there marries Maxine. Two days after Morgan brings his wife home. She receives a cool reception from his daughter and as time passes, the two women become bitter enemies. Later Maxine persuades her husband to give her the necklace bequeathed to June's daughter, and when June sees it on Maxine's neck, her anger knows no bounds. Maddened with fury, June tears the jewel from the charlatan's throat. Morgan, entering the scene, heeds his wife's reproaches, and in frenzied rage orders June, her husband, and daughter from his home. When the governess, for thirty years in his service, rebukes Morgan for his heartless conduct, and warns him that "he is living in a fool's paradise," she too is ordered from the house. June, now living in a cheap boarding house with her family, in poverty, is about to become a mother. Terrified at the thought of further responsibilities and the bitter recollection that the venom of Maxine's malice has transformed her kindly father into a brute, who forced this misery on her. June conceives a desperate plan to avoid the consequences of motherhood, but fortunately, her intentions are defeated in time by her husband. John now decides to see Morgan and tell him the facts. Morgan informed by John of their poverty and June's desperate notion, resolves to come to their aid, but, here too Maxine comes forward unexpectedly, orders John from the house, and tells Morgan "she doesn't want his pauper relatives around." One evening, Rufus Stone, Maxine's lawyer and friend takes her to a performance of "Faust." Morgan remains at home. In their absences, he compares "Faust's" with his own life. He sees himself as "Faust" giving the jewels to Maxine, as Marguerite; while Rufus, as Mephisto, laughs mockingly at his folly. Morgan, now awakened, realizes that the old governess was right when she accused him of living in "a fool's paradise." Late that night, Morgan finds Maxine in the arms of Rufus. His infatuation turns to hatred, he tells Rufus, "You love my wife? Take her." He tears the necklace from Maxine's neck, and orders the pair from his home. He restores his daughter and family to his home. Maxine, now proposes marriage to Rufus, but he tells her she is too late. A week later, while celebrating the reunion of his family, Maxine. like an ugly shadow from the past appears. It is her last attempt to regain the old man's affections. He again commences to weaken before the poisonous charm of Maxine, but now comes the magic power of his little grandchild who rushes to his aid and overpowers the pretense of the vampire. Morgan gives Maxine a liberal allowance and freedom, commands her to leave, and she goes forth into the night.