Light-Fingered Lester is a midget who masquerades as a baby to pick pockets. As his accomplice Myrtle holds him and sells newspapers, he picks the customers' pockets. When police officers Clancy and O'Brien spot them, Lester and Myrtle make a run for it. Lester hides in a hollow tree in a park, where the gang comes to trade in Alfalfa's perpetually crying baby brother in for a quieter model. The Rascals take Lester to Alfalfa's house, where he arouses suspicion by making a phone call, drinking beer, and smoking cigars. When Lester calls Myrtle on the phone, the police are able to track him down, and take the gang with him as his "mob" to Police Headquarters. Lester and Myrtle are arrested while the gang gets a stern lecture about pulling stunts like trading away babies.
Light-Fingered Lester was played by Jerry Marenghi, later known as Jerry Maren, best known as a member of the Lollipop Guild on "The Wizard of Oz."